Tony Roumell April 18, 2018 Compliance ACA, Affordable Care Act
The Center for Medicare and Medicaid (CMS) has issued a final rule to expand short-term insurance options for Americans as part of the federal government’s continuing campaign to undermine the Affordable Care Act (ACA). The new HHS Notice of Benefit and Payment Parameters for 2019 provides operational and technical guidance to insurers that want to offer Qualified Health Plans (QHPs) in the Federally-facilitated Exchanges (FFEs) for plan years beginning in 2019.
Untouched by this new rule is the ACA’s employer mandate that requires employers with 50 or more full-time or full-time equivalent employees to offer minimum essential coverage to 95% of full-time employees and their dependents and where such coverage to full-time employees is both affordable and meets minimum value or be assessed employer shared responsibility payments (ESRPs) as penalties for failing to comply with the healthcare law.
The IRS started issuing Letter 226J penalty notices at the end of last year, some containing ESRPs larger than $20 million, to employers that did not comply with the law in 2015 based on annual ACA information filings provided to the IRS. The penalty notices are anticipated to be issued for 2016 before the end of the year.
Among the changes the new CMS rule will promulgate:
In the meantime, if you are an employer that has just received a Letter 226J from the IRS, learn how to respond to this penalty notice by clicking here.
If you haven’t received a Letter 226J yet, consider reviewing the 1094-C and 1095-C forms filed with the IRS in 2015, 2016 and 2017 to determine if you may be a risk of being assessed an ACA penalty. To learn more, click here.
For any questions or a consultation on the ACA or IRS Letter 226J, contact Tony Roumell at 415-435-3031 or 619-458-9269