On Sept. 5, 2013, the IRS released two long-awaited proposed rules governing health care coverage information reporting requirements. These requirements were originally supposed to apply to coverage in 2014 but the IRS has decided to delay these reporting requirements until 2015, in conjunction with the employer mandate delay. [Read prior news about the delay here].
The proposed rules implement reporting requirements for large employers and health insurance issuers, sponsors of self-insured plans and others. The first proposed rule generally requires large employers (i.e. those with 50 or more full-time employees) to report their compliance with the employer mandate to the IRS and the level of coverage they provide to their employees. Employers must provide similar information to their employees to enable the employee to determine his or her eligibility for a tax credit. The second proposed rule imposes similar reporting requirements on health insurance issuers, sponsors of self-insured plans, government agencies, and other individuals that provide minimum essential coverage under PPACA (aka The Affordable Care Act, aka “Obamacare”).
The first coverage reports to the IRS under both rules, which will cover the 2015 calendar year, are due by Feb. 28, 2016, with subsequent reports due annually thereafter by February 28 for the previous calendar year. The first coverage reports to employees under both rules, covering the 2015 calendar year, are due by Jan. 31, 2016, with subsequent reports due annually thereafter by January 31 for the previous calendar year.
Additional analysis will be shared once we’ve compiled and worked through these two notices (the 72 page notice for Reporting by Applicable Large Employers on Health Insurance Coverage Offered Under Employer-Sponsored Plans and the 42 page notice Information Reporting of Minimum Essential Coverage).
We are also looking for your input to add to our comments to the IRS. All comments to the IRS are due by early November 2013 and a public hearing has been scheduled for November 19, 2013, at 10 a.m., in the auditorium, Internal Revenue Building, 1111Constitution Avenue NW., Washington, DC. Reports to each covered-employee are due by January 31, 2016 and data/reports to the IRS are due by February 28, 2016.
The Treasury Department is highlighting this as an attempt to “streamline” the reporting process. They outline a number of possible ways under which reporting could be lessened for some groups.
Links to the Proposed Rules:
- Reporting by Applicable Large Employers on Health Insurance Coverage Offered Under Employer-Sponsored Plans (72 pages)
- Information Reporting of Minimum Essential Coverage (42 pages)
- Revised – updated link to Proposed Rules