Benefits Blog

UPDATE:The IRS changed positions yet again. Just one week after we published the original blog post, the IRS reversed itself in Notice 2015-68, which says that an employer's HRA that is integrated with its fully insured medical coverage will not be required to separately report the HRA coverage in Part III of Form 1095-C. Separate reporting will be required, however, if an employer's HRA covers people who have other medical coverage not sponsored by that same employer (e.g., an HRA that reimburses out-of-pocket expenses under a spouse's employer's plan).So it's back to business as usual. Whew!ORIGINAL POST:Medium-sized and large employers whose plans have both insured medical and an HRA should take note. While analyzing the IRS' recent draft instructions for 1094/1095 reporting, we found something peculiar.

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UPDATE:The IRS changed positions yet again. Just one week after we published the original blog post, the IRS reversed itself in Notice 2015-68, which says that an employer's HRA that is integrated with its fully insured medical coverage will not be required to separately report the HRA coverage on Form 1095-B or Form 1095-C. Separate reporting will be required, however, if an employer's HRA covers people who have other medical coverage not sponsored by that same employer (e.g., an HRA that reimburses out-of-pocket expenses under a spouse's employer's plan).So it's back to business as usual. Whew!ORIGINAL POST:Small employers whose plans have both insured medical and an HRA should take note. While analyzing the IRS' recent draft instructions for 1094/1095 reporting, we found something peculiar.

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The post below has been updated to account for the 2-year delay passed by Congress in December 2015.Implementation of the ACA has taken quite a long time, and there are two final pieces left. One of them is the 40% excise tax on so-called high cost employer-sponsored health coverage, better known as the "Cadillac tax." (The final shoe to drop will be fully insured nondiscrimination, if you're wondering.) In this post we'll collect and analyze the available guidance, and we'll keep updating it as we get clarity from IRS. Background on the Cadillac Tax Beginning with calendar year 2020, the ACA imposes a 40% tax, determined monthly, on the excess of the aggregate cost of so-called “applicable coverage” for each employee, former employee, surviving spouse or other primary insured individual over a certain dollar limit.

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The Supreme Court of the United States (SCOTUS) struck down same-sex marriage bans in four states on US Constitutional grounds, effectively legalizing same-sex marriage nationwide. So how does that affect employee benefit plans? Here's a brief analysis of the issues along with practical considerations for moving forward. In general, though, the bottom line is this: Employers eager to open their plans to same-sex spouses have little risk in moving forward. Those wanting a clearer picture of the details are probably safe to wait a few weeks or months for guidance, but probably no more than a few months.It's Not the Supreme Court that Will Require Coverage of Same-Sex Spouses. It's the EEOC.There's no federal nondiscrimination law specific to sexual orientation. One has been introduced in nearly every Congressional session since 1994, but they've never gone very far. The Supreme Court's ruling legalizing same-sex marriage didn't change that fact.

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