Private Exchanges and Health Plan Choices in the Workplace

Some businesses have begun to direct their employees to online exchanges to purchase health insurance plans, and this option seems to be catching on. But how is this beneficial for both the employer and the employee? Mark Zdechlik of NPR, in partnership with Kaiser Health News, discusses the details of this up-and-coming health insurance trend.  Article.

Important Deadline and Health Care Reform Update

The Health Care Reform landscape is constantly changing and evolving. The information below is meant to remind you of a Transitional Reinsurance Fee deadline on November 15 and instructions on Forms 1094-C, 1095-C, 1094-B, 1095-B, and 1095-A.

Important Deadline: Transitional Reinsurance Fee

Employers with self-funded plans need to be aware of and pay attention to the Transitional Reinsurance Fee and submit their enrollment count via Pay.gov to the Centers for Medicare & Medicaid Services by November 15, 2014. Following submission, employers will receive a bill for the amount owed, with the first payment of $52.50 per covered life due by January 15, 2015, and the second payment of $10.50 per covered life due by November 15, 2015.

Please note: HSAs, as well as HRAs that are integrated with a health plan, are not included in this fee.

Learn more about the Transitional Reinsurance Fee by clicking Centers for Medicare & Medicaid Services above.  Please note that you do not receive an actual invoice for are prompted with how much you owe upon completing the submission.

 

Update: Completion of Forms

On August 28, 2014, the IRS released draft instructions to Forms 1094-C, 1095-C, 1094-B, 1095-B and 1095-A. Although these are draft instructions, they offer good insight into the way the IRS will handle the filing requirement for employers, insurance carriers and the exchange.

Click here to read a brief summary for each form.

Please contact your Eide Bailly professional for additional information, visit our website or watch our Health Care Reform videos.

PreferredOne No Longer Part of MNSure Health Exchange

As of next year, Minnesota’s health exchange MNsure will no longer be able to sell PreferredOne health plans. This comes as a blow to the exchange, as PreferredOne has made up about 59% of the MNsure market share. However, MNsure still has at least four other insurers available. An article from the Minneapolis St. Paul Business Journal discusses the reasoning behind the split, and speculates the implications.

Life Events and the Premium Tax Credits

If you are taking advantage of the premium tax credit on a health insurance marketplace and have recently had a change in circumstance through a life event such as marriage or a new job, it is necessary to inform the Health Insurance Marketplace to assure you are receiving the proper amount of assistance. What qualifies as a life event, and why is this important? The following article has the details.

http://www.benningtonbanner.com/localnews/ci_26415659/getting-married-can-affect-your-premium-tax-credit

Colorado’s Unique Approach to Funding State Health Insurance

Colorado is one of 17 states, including the District of Columbia, that has a state exchange marketplace. In lieu of using the federal exchange, these states have been funding and operating their own. Recently, Colorado has levied a new fee in order to help fund this state exchange. However, this fee would apply to all policies, not just those purchased on the exchange. An article from Health Insurance Exchange (HIX) discusses the CO Marketplace.

Marketplace Information Reporting: Final Regulations Issued

Final regulations for information reporting have recently been released by the IRS, and are effective as of May 7, 2014. These regulations apply to tax years ending after December 31, 2013. Information needs to be reported to both the IRS and taxpayers. This reporting is required by the individual market of the health insurance marketplaces on enrollments in qualified health plans (IRC Sec. 36B(f)(3)) and is mandatory for assistance credits.

There have also been amended regulations released by the Department of Labor regarding COBRA coverage. Details on special enrollment periods and new options for affordable coverage can be found on the Department of Labor website: http://www.dol.gov/ebsa/cobra.html

Watch for additional information.

Market Changes for Employers and Exchanges

The S&P 500 market index has predicted that about 90% of its workforce will have something other than job-based health coverage by the year 2020. This report analyzed 500 companies and predicts coverage will shift towards the marketplace in the next few years, especially for those with low and middle-income. The Daily Briefing discusses.