Volume 2, Number 11, November 2010

HEALTH PREMIUM REPORTING

The Kaiser Family Foundation has prepared an educational cartoon that simplifies Health Care Reform. It talks about what is currently happening, what will change and how you will be affected by this change.

Volume 2, Number 10, October 2010

HEALTH PREMIUM REPORTING - Form W-2

Health care reform legislation added a new requirement to include the aggregate cost of employer-sponsored health coverage on the employee's Form W-2.  The premiums are not taxable.  The requirement is to make employees aware of the actual cost of health insurance. 

The IRS recently announced that reporting will not be required on W-2 forms issued for the 2011 tax year - it will be optional.  This gives employers additional time to make the changes to their payroll systems and procedures.  A draft version of the 2011 Form W-2 has been released by the IRS with new Code DD for employers to use to report the cost of employer-sponsored health coverage in Box 12.  Additional guidelines will be issued later this year.  Reporting will be a requirement in 2012. 

Information supplied by FlexMagic Consulting, Inc., www.flexmagic.com, offering tax free benefits for all stages of life to support your employee benefit package. 

Volume 2, Number 8, August 2010

HEALTH CARE REFORM

New requirements will take effect on September 23, 2010 for new and renewing health insurance plans. Health insurance plans in existence as of March 23, 2010 may be grandfathered from complying with certain requirements.

The following changes apply to all plans written on or after September 23, 2010 and all existing plans upon renewal:

• Members can add dependents up to age 26, regardless of student or marital status.
• Pre-existing condition exclusions for members under age 19 are removed. · Lifetime limits for "essential benefits" are eliminated. Essential benefits are not totally defined yet.
• Certain annual dollar limits are removed for "essential benefits."

For non-grandfathered plans or new plans written:

• Removal of member cost sharing for in-network preventive benefits, as defined by law.
• New internal claims appeal and external review processes.
• Patient protections such as primary care physician selection, direct access to OB/GYN services, emergency services.

For grandfathered plans:

• Members can add a new family member.
• Groups can add new employees.