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Posts Tagged ‘Minimum Essential Coverage’

IRS Grants Extension for 6055 and 6056 Reporting

Tuesday, January 26th, 2016

According to United Healthcare, Broker Connection Special Edition:

“On Dec. 28, 2015, the IRS announced that it is granting an automatic extension for the 2015 information returns required of insurers, employers and certain other providers of Minimum Essential Coverage (MEC) under Section 6055 and 6056 of the Internal Revenue Code (IRC).

Coverage providers that need more time now have until March 31 to get Form 1095 to individuals and until June 30 to electronically file with the IRS. For providers not filing electronically, the deadline is May 31, 2016. (more…)

Employer Paid Individual Health Insurance Policies Create the Potential for Significant Penalties, but Limited Relief is Available

Thursday, June 25th, 2015

National Law Review reports:

“Despite guidance from the Internal Revenue Service (“IRS”), the Department of Labor (“DOL”) and the Department of Health and Human Services (“HHS”) indicating the prohibition of the practice under the Affordable Care Act (“ACA”), some employers continue to reimburse employees for health insurance premiums. This practice could lead to thousands of dollars in penalties.

Notice 2015-17 is the IRS’ most recent guidance on such arrangements, reaching the same conclusions. It also, however, provides welcome penalty relief for certain employers.

(more…)

Employer Shared Responsibility

Friday, February 27th, 2015

Generally, under Employer Shared Responsibility (ESR), applicable large employers (generally, employers with 50 or more full-time employees, including full-time equivalents) face a potential
penalty if they don’t offer minimum essential coverage to full-time employees and their child dependents that has both minimum value (company is paying at least 60 percent of covered health care expenses for a typical population) and is affordable (full-time employees cannot pay more than 9.5 percent of their income for the lowest-cost, self-only coverage). Employers with fewer than 50 full-time employees are not subject to ACA’s ESR provisions. For 2015, employers with between 50 and 99 full-time employees are exempt from the ESR penalty if the employer provides an appropriate certification and meets certain conditions.
In 2015, employers subject to the mandate must offer coverage to 70 percent of their full-time employees and child dependents  or risk penalties for failure to offer coverage to all full-time employees and child dependents. To avoid a penalty in 2016, employers subject to ACA’s ESR provisions must offer coverage to 95 percent of their full-time employees and child dependents.

How To Report to the IRS About Health Coverage Under Obamacare

Tuesday, January 13th, 2015

Small Business Trends reports:

“This year as you complete your federal income tax return, you’ll need to provide extra information, due to Obamacare.

The Affordable Care Act will require one of three things for the 2014 tax year:

  • If you had health coverage for the entire year in 2014, you will be prompted to check the appropriate box on your tax return.
  • If you were exempt or got assistance through a Marketplace, you will need to take additional steps. Those steps may include completing Form 8962 for claiming the Premium Tax Credit assistance. Or you may need to complete a different form to claim an exemption.
  • If you are not exempt and chose not to buy health coverage, you will have to pay an extra tax or fee.

(more…)

Employer Shared Responsibility Payments and Reporting Requirements Under the Affordable Care Act: Code Sections 6055 and 6056

Friday, October 3rd, 2014

The National Law Review reports:

“There are two types of employer shared responsibility payments, also known as pay or play penalties, under the Affordable Care Act (ACA).  The first penalty under Internal Revenue Code (Code) Section 4980H(a) is the penalty for failure to offer health coverage.  Effective for plan years beginning on or after January 1, 2015, a $2,000 annual penalty applies to a large employer that fails to offer at least 70 percent of its full-time employees (FTEs) health coverage.  For plan years beginning on or after January 1, 2016, the $2,000 penalty applies to an employer that fails to offer health coverage to at least 95 percent of its FTEs.  The $2,000 penalty is assessed on a monthly basis, but applies to all of an employer’s FTEs, minus 30 FTEs (or minus 80 FTEs for 2015).

(more…)

New Guidance on Information Reporting Requirements Under the Affordable Care Act

Wednesday, September 3rd, 2014

SBA.gov reports:

“Under the provisions of the Affordable Care Act, those employers that are subject to the Employer Shared Responsibility provisions must report certain information regarding the health coverage they offer their full-time employees (known as Section 6056 reporting).  The law also requires information reporting by insurers, self-insuring employers, and other parties like governmental entities that provide health coverage to individuals (Section 6055 reporting).  These reporting provisions take effect on January 1, 2015, and the first reports are due to the Internal Revenue Service in early 2016.

(more…)

College Grads Have Several Options To Get Health Insurance

Tuesday, July 15th, 2014

Insurance News Net reports:

“Although the open enrollment period forhealth insurance under the Affordable Care Act ended in April, college graduates have several other options for coverage.

The website, healthcare.gov, says college graduates, who do not have health insurance provided from an employer, can enroll in private plans outside the online healthcare marketplace from health insurance companies.

(more…)

Questions and Answers on the Individual Shared Responsibility Provision

Tuesday, September 3rd, 2013

The IRS reports:

“Basic Information

1. What is the individual shared responsibility provision?

Under the Affordable Care Act, the federal government, state governments, insurers, employers and individuals are given shared responsibility to reform and improve the availability, quality and affordability of health insurance coverage in the United States. Starting in 2014, the individual shared responsibility provision calls for each individual to have minimum essential health coverage (known as minimum essential coverage) for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return.

(more…)

News from the Blues, July 10th

Tuesday, July 16th, 2013

BCBSIL reports:

Affordable Care Act Question of the Week: Minimum Essential Coverage [All Markets]

The “Question of the Week” answers frequently asked questions regarding the Affordable Care Act (ACA). This week, we feature a question about Minimum Essential Coverage.

(more…)

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