Healthcare Reform Updates

REMINDER:  PCORI Fees Due By July 31, 2018

Employers that sponsor self-insured group health plans, including health reimbursement arrangements (HRAs) should keep in mind the upcoming July 31, 2018 deadline for paying fees that fund the Patient-Centered Outcomes Research Institute (PCORI).  As background, the PCORI was established as part of the Affordable Care Act (ACA) to conduct research to evaluate the effectiveness of medical treatments, procedures and strategies that treat, manage, diagnose or prevent illness or injury.  Under the ACA, most employer sponsors and insurers will be required to pay PCORI fees until 2019 (the fee does not apply to plan years ending on or after October 1, 2019).

Read More…

legal alerts
IRS Adjusts 2018 HSA Contribution Limit – Again

The IRS has announced it is modifying the annual limitation on deductions for contributions to a health savings account (“HSA”) allowed for taxpayers with family coverage under a high deductible health plan (“HDHP”) for the 2018 calendar year. Under Rev. Proc. 2018-27, taxpayers will be allowed to treat $6,900 as the annual limitation, rather than the $6,850 limitation announced in Rev. Proc. 2018-18 earlier this year.

Read More…

legal alerts
CMS Extends Transition Relief for Non-Compliant Plans through 2019

On April 9, 2018, the Centers for Medicare & Medicaid Services (CMS) announced a one-year extension to the transition policy (originally announced November 14, 2013 and extended several times since) for individual and small group health plans that allows issuers to continue policies that do not meet ACA standards.  The transition policy has been extended to policy years beginning on or before October 1, 2019, provided that all policies end by December 31, 2019.  This means individuals and small businesses may be able to keep their non-ACA compliant coverage through the end of 2019, depending on the policy year.  Carriers may have the option to implement policy years that are shorter than 12 months or allow early renewals with a January 1, 2019 start date in order to take full advantage of the extension.

Read More…

legal alerts
Cadillac Tax Delayed Until 2022

What: On January 22, 2018, Congress passed and President Trump signed into law a two-year delay on the Affordable Care Act's 40 percent excise tax on high-cost employer-sponsored health coverage known as the Cadillac tax.

When: The Cadillac tax, was previously set to become effective in 2020. With the extension, this has been delayed until 2022. 

Who: The Cadillac tax will generally apply to the monthly cost of an employee's employer-sponsored health coverage that exceeds a threshold amount specified in the law. Generally, for insured coverage, the insurer is responsible for paying the tax. For self-insured coverage, the employer will be responsible for the tax. 

Read More…

legal alerts