A provision in the health care reform law that requires employers with more than 200 employees to automatically enroll new employees in one of their health care plans will not go into effect until 2014, federal regulators say.
In guidance released last week by the departments of Labor, Health and Human Services and the Internal Revenue Service, the agencies said the requirement will not go into effect until regulations are issued. Separately, the Labor Department affirmed its earlier guidance that the automatic enrollment rules won’t be ready until 2014.“In view of the need for coordinated guidance and a smooth implementation process, including an applicability date that gives employers sufficient time to comply, the Department of Labor has concluded that its automatic enrollment guidance will not be ready to take effect by 2014,” it said in a statement.
The statutory automatic enrollment provision, unlike many others in the Patient Protection and Affordable Care Act, itself does not stipulate an effective date.Under the law, employers are required to notify employees about automatic enrollment and to give them an opportunity to opt out of a plan in which they were automatically enrolled.
Wednesday, February 15, 2012
Thursday, February 9, 2012
Employers Given More Time to Comply With Heath Summary Rule
Employers will have more time to comply with a health care reform law requirement that they provide employees with an “easy-to-understand” summary of benefits and coverage, the Obama administration announced Thursday.
Under the final rule, the new statement—known as an SBC—would apply for plan years beginning on or after Sept. 23.For example, an employer with a plan year that starts Jan. 1 and an open enrollment period that runs from Oct. 1 to Nov. 1 would have to provide the SBC by Oct. 1.Previously, the administration said the information would have had to be distributed by March 23, which benefit experts said would not have given employers enough time to prepare and distribute the information.
The longer compliance period “will be very helpful to plan sponsors, although they still will need to devote significant time and resources to complying with the SBC by this date,” said Debbie Harrison, senior manager-public policy with the National Business Group on Health in Washington.In addition, the amount of information employers would have to provide is reduced compared to the administration’s previous proposal, which said employers would have to provide sample cost information for having a baby, managing Type 2 diabetes and treating breast cancer. Providing an example of the cost of treating breast cancer no longer is required.
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Under the final rule, the new statement—known as an SBC—would apply for plan years beginning on or after Sept. 23.For example, an employer with a plan year that starts Jan. 1 and an open enrollment period that runs from Oct. 1 to Nov. 1 would have to provide the SBC by Oct. 1.Previously, the administration said the information would have had to be distributed by March 23, which benefit experts said would not have given employers enough time to prepare and distribute the information.
The longer compliance period “will be very helpful to plan sponsors, although they still will need to devote significant time and resources to complying with the SBC by this date,” said Debbie Harrison, senior manager-public policy with the National Business Group on Health in Washington.In addition, the amount of information employers would have to provide is reduced compared to the administration’s previous proposal, which said employers would have to provide sample cost information for having a baby, managing Type 2 diabetes and treating breast cancer. Providing an example of the cost of treating breast cancer no longer is required.
To view the article click here
Wednesday, January 25, 2012
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.
To view the entire article please click here.
“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.
To view the entire article please click here.
Wednesday, January 4, 2012
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.
To view the
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.
To view the
Monday, December 19, 2011
Supreme Court sets oral arguments on health care reform law
WASHINGTON—The Supreme Court has set aside three days at the end of March to hear oral arguments in lawsuits challenging the legality of the health care reform law.
The court announced Monday that it will hear five and a half hours of arguments over three days.
On March 26, the justices will hear arguments on whether a challenge to the law's individual mandate that requires individuals to enroll in a qualified plan or pay a financial penalty can be imposed before the provision's January 2014 effective date.
On March 27, the court will hear arguments on whether the individual mandate is constitutional.
On March 28, the court will hear arguments on whether the entire law can stand if the individual mandate were to be found unconstitutional.
A ruling is expected by the end of the court's term in June.
The high court in November agreed to review the legality of the Patient Protection and Affordable Care Act.
To view the entire article click here.
The court announced Monday that it will hear five and a half hours of arguments over three days.
On March 26, the justices will hear arguments on whether a challenge to the law's individual mandate that requires individuals to enroll in a qualified plan or pay a financial penalty can be imposed before the provision's January 2014 effective date.
On March 27, the court will hear arguments on whether the individual mandate is constitutional.
On March 28, the court will hear arguments on whether the entire law can stand if the individual mandate were to be found unconstitutional.
A ruling is expected by the end of the court's term in June.
The high court in November agreed to review the legality of the Patient Protection and Affordable Care Act.
To view the entire article click here.
Monday, November 14, 2011
Supreme Court takes up challenge to health care reform law
The U.S. Supreme Court will hear a challenge to President Barack Obama's sweeping health care reform law, the court announced Monday.
Oral arguments will likely be held in late February or March, with a ruling by June.
A key issue to be considered by the high court's nine justices is whether the "individual mandate" section of the law -- requiring nearly all Americans to buy health insurance by 2014 or face financial penalties -- is an improper exercise of federal authority.
Various states have argued that if that linchpin provision is found unconstitutional, the entire law will have to be scrapped.
To view the entire article click here
Oral arguments will likely be held in late February or March, with a ruling by June.
A key issue to be considered by the high court's nine justices is whether the "individual mandate" section of the law -- requiring nearly all Americans to buy health insurance by 2014 or face financial penalties -- is an improper exercise of federal authority.
Various states have argued that if that linchpin provision is found unconstitutional, the entire law will have to be scrapped.
To view the entire article click here
Friday, October 14, 2011
CLASS Program Axed by Obama Administration
The Obama administration announced today it will not move forward with a new long-term care insurance plan -- a major part of its health care law -- because of problems with paying for it.
"Despite our best analytical efforts, I do not see a viable path forward," wrote Health and Human Services Secretary Kathleen Sebelius in a letter to Congress.
Congressional Republicans had vowed to kill the program, calling the Community Living Assistance Services and Supports program (CLASS) too expensive.
Some Republicans have vowed to try and repeal the entire Obama health care law, calling it too much of a government intrusion into the health care system.
A key part of the law -- the requirement that nearly all Americans buy some form of health insurance -- is also being challenged in court; the Supreme Court is expected to rule on the case next summer.
For the entire article click here
"Despite our best analytical efforts, I do not see a viable path forward," wrote Health and Human Services Secretary Kathleen Sebelius in a letter to Congress.
Congressional Republicans had vowed to kill the program, calling the Community Living Assistance Services and Supports program (CLASS) too expensive.
Some Republicans have vowed to try and repeal the entire Obama health care law, calling it too much of a government intrusion into the health care system.
A key part of the law -- the requirement that nearly all Americans buy some form of health insurance -- is also being challenged in court; the Supreme Court is expected to rule on the case next summer.
For the entire article click here
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