Beth Ward, Author at Vizance

Recently, the Internal Revenue Service issued guidance again adjusting the maximum health savings account (HSA) contribution for individuals with family coverage under a high deductible health plan (HDHP). The new guidance, Revenue Procedure 2018-27, provides that for the 2018 calendar year an individual with HDHP family coverage may use $6,900 as the maximum contribution limit rather than the lower limit of $6,850 established following the passage of the 2018 Budget Reconciliation Act and published by the IRS on March 2, 2018. The new guidance further provides that, if permitted by the HSA trustee or custodian, an individual who receives a distribution from an HSA of an excess contribution (with earnings) based on the previously published $6,850 limit may repay the distribution to the HSA and the amounts will not be includable in the individual’s taxable income or subject to the 20 percent additional tax under Section 223(f)(4) of the Internal Revenue Code.

Recently, the Centers for Medicare and Medicaid Services (“CMS”) announced further extension of its transitional policy allowing insurers in the small group market to renew health insurance policies that they would otherwise have had to cancel due to noncompliance with the Affordable Care Act (the “ACA”). By way of background, the ACA includes market reforms that created new coverage standards for health insurance policies such as: premium rating rules, guaranteed availability and renewability, and the requirement to provide essential health benefits. Under the ACA the market reforms were to be effective for plan years beginning on or after January 1, 2014. However, prior to the effective date, CMS implemented a transitional relief policy that, if permitted by the states, would allow insurers offering coverage in the individual and small group markets the option of renewing current policies for current enrollees without adopting all of the ACA market reforms. The transitional relief policy was extended several times, but was set to expire in 2018. The CMS guidance extends the transitional relief policy through 2019. Under the CMS guidance, states can permit insurers that have continually renewed health insurance coverage for small groups since 2014 under the transitional relief policy to again renew such coverage for a policy year beginning on or before October 1, 2019. However, any policy renewed under the transitional relief cannot extend beyond December 31, 2

The complex requirements of COBRA leave many employers anxious and concerned about their liability and possible penalties from the IRS and Department of Labor. Join us for a webinar on Tuesday, July 18th at 1:30 pm when Beth Ward, Vizance’s Compliance Attorney, will address your COBRA concerns, helping you to become compliant. In this webinar we will discuss: > Triggering rules for COBRA > Notices that must be provided > Penalties for noncompliance > Difference between Federal COBRA rules and State Continuation RSVP to Joanna Baisch at (262) 563 5457 or register@vizance.com

Although the future of the Affordable Care Act may be uncertain, the Department of Labor has not reduced its enforcement efforts. Rather, the DOL has increased the number of audits and has stated that it will continue to focus its resources on compliance. Beth Ward, Vizance's Compliance Attorney, recently presented a seminar regarding this topic. Beth has actively assisted numerous employers with DOL and IRS audits, along with pre-audit corrective actions. Future webinars and seminars will again cover this topic. If you're interested in attending, please email us at contact@vizance.com.

On March 6, 2017, the U.S. House of Representatives issued two bills, referred to together as the American Health Care Act, to repeal and replace the Affordable Care Act (ACA). If enacted, the American Health Care Act would not repeal the ACA in its entirety, but it would affect several key provisions impacting employers such as the employer mandate and the tax on high cost health coverage (i.e. the “Cadillac” tax). The American Health Care Act would also provide employers with greater flexibility in designing benefit plans by significantly enhancing Health Savings Accounts (HSAs) and eliminating the restrictions on Health Flexible Spending Accounts (Health FSAs). The key “employer” provisions of the American Health Care Act include: Eliminating the Employer Mandate Penalties. Under the ACA, large employers (employers with 50 or more full-time employees including full-time equivalents) must offer affordable, minimum value health care coverage or pay a penalty under Section 4980H of the Internal Revenue Code. The American Health Care Act would reduce the penalties under Section 4980H to zero retroactively for months beginning after December 31, 2015, effectively eliminating the employer mandate under the ACA. Delaying the “Cadillac” Tax. The ACA imposes a 40% excise tax, referred to as the “Cadillac” tax, on high cost employer-sponsored health coverage. The American Health Care Act would delay the effective date of the Cadillac tax for another five yea

On February 23, 2017, the Department of Health and Human Services (“HHS”) announced that insurers in the small group market will be permitted to renew health insurance policies that would they otherwise have had to cancel due to noncompliance with the Affordable Care Act (the “ACA”). By way of background, the ACA includes market reforms that created new coverage standards for health insurance policies such as: premium rating rules, guaranteed availability and renewability, and the requirement to provide essential health benefits. Under the ACA the market reforms were to be effective for plan years beginning on or after January 1, 2014. However, prior to the effective date President Obama implemented a transitional relief policy that, if permitted by the states, would allow insurers offering coverage in the individual and small group markets the option of renewing current policies for current enrollees without adopting all of the ACA market reforms. The transitional relief policy was extended several times, but was set to expire in 2017. The HHS guidance again extends the transitional relief policy. Under the HSS guidance, states can permit insurers that have continually renewed health insurance coverage for small groups since 2014 under the transitional relief policy to again renew such coverage for a policy year beginning on or before October 1, 2018. However, any policy renewed under the transitional relief cannot extend beyond December 31, 2018. Also, state

Author: Beth Ward

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