House vote on repeal of long-term care program set for next week: Boehner

WASHINGTON—The U.S. House of Representatives next week will vote on legislation that would kill a health care reform law provision to establish a voluntary long-term care program, House Speaker John Boehner said Wednesday.

“Next week, we will repeal the CLASS Act,” the Ohio Republican said during an address before the National Assn. of Health Underwriters conference in Washington. CLASS is the acronym for the Community Living Assistance Services and Supports Act, which was incorporated in the 2010 health care reform law.“Let’s get it off the books,” Speaker Boehner said of the program.Earlier this month, the House Ways and Means Committee approved the bill, H.R. 1173, to kill the program, implementation of which the Obama administration suspended in October as being unworkable.Administration officials said the program would have been unworkable because of its voluntary nature, with massive adverse selection that would have sent health care premiums spiraling.Turning to the health care reform law, which he strongly opposes, Speaker Boehner said its costs ultimately will bankrupt the country.“It will ruin” what has been the world’s best health care system, he said.He noted that the law is transferring to government from consumers health care coverage decisions. As an example, he cited a requirement that will require many health care plan sponsors—including those opposed for religious reasons—to offer coverage for contraceptives.Speaker Boehner did not address the bill’s prospects of passage in the Senate.

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IRS Issues Additional Guidance on W2 Reporting

WASHINGTON—Newly released Internal Revenue Service guidance resolves additional questions employers have raised about a health care reform law provision that will require them to report the cost of health care coverage on employees' W-2 wage and income statements.

Under that requirement, health care cost information will have to be reported on 2012 W-2s, which will be issued in 2013. Under previous IRS guidance, smaller employers—those that distribute fewer than 250 W-2s in 2011—are exempt from this requirement until at least 2014 and possibly longer.

Some exemptions to reporting rule

The latest guidance, released Tuesday, makes clear that employers can—but are not required to—report contributions to health reimbursement arrangements in calculating health care costs.
In addition, the cost of providing coverage through employee assistance programs, wellness programs or on-site medical clinics is not required to be reported if the employer does not charge premiums for the coverage to COBRA beneficiaries.

The guidance also clarifies that the reporting requirement does not apply to Indian Tribal governments.

In all, “This is very helpful guidance,” said Anne Waidmann, a director with PricewaterhouseCoopers L.L.P. in Washington.

The latest guidance also reiterates numerous provisions in last year’s guidance, including that that the cost of coverage that is taxable to employees, such as for a child over age 26, must be reported on the W-2, and that contributions employees make to flexible spending accounts are to be excluded from the health care cost figure.

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