The Affordable Care Act (ACA) requires reporting by insurers, self-insuring employers, and other parties that provide health coverage. It also requires information reporting by certain employers with respect to the health coverage offered to their full-time employees.
The Treasury Department recently announced that it will provide an additional year before mandatory employer and insurer reporting requirements begin. This is designed to meet two goals:
- To allow the administration to consider ways to simplify the new reporting requirements consistent with the law, and
- To provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.
Given this transitional relief from the reporting obligation, employer shared responsibility payments and reporting requirements will not apply until 2015. The administration is working on proposed rules, which are expected later this summer, that will offer further guidance.
While reporting is not required until 2015, employers and insurers are strongly encouraged to voluntarily implement this reporting in 2014 to prepare for a smoother transition the following year.
What does this mean for me as an employer?
The Treasury's announcement left many unanswered questions. Once the new guidance is released, you can trust Wellmark to get the information out to you, answer your questions, and help you through the next steps. We're all in this together.
Wellmark is here to inform, lead, assist and support you through all the ACA changes as you make your decisions about your group health plan. Talk to your Wellmark representative, broker, or agent about Wellmark coverage options that best meet the ongoing needs of you and your employees. Continue to monitor WeKnowReform.com for updates.
Wellmark is not providing any legal advice with regard to compliance with the requirements of the Affordable Care Act (ACA) or the Mental Health Parity Addiction Equity Act (MHPAEA). Regulations and guidance on specific provisions of the ACA and MHPAEA have been and will continue to be provided by the U.S. Department of Health and Human Services (HHS) and/or other agencies. The information provided reflects Wellmark's understanding of the most current information and is subject to change without further notice. Please note that plan benefits, rates, renewal rate adjustments, and rating impact calculations are subject to change and may be revised during a plan's rating period based on guidance and regulations issued by HHS or other agencies. Wellmark makes no representation as to the impact of plan changes on a plan's grandfathered status or interpretation or implementation of any other provisions of ACA. Any questions about Wellmark's approach to the ACA or MHPAEA may be referred to your Wellmark account representative. Wellmark will not determine whether coverage is discriminatory or otherwise in violation of Internal Revenue Code Section 105(h). Wellmark also will not provide any testing for compliance with Internal Revenue Code Section 105(h). Wellmark will not be held liable for any penalties or other losses resulting from any employer offering coverage in violation of section 105(h). Wellmark will not determine whether any change in an Employer Administered Funding Arrangement affects a health plan's grandfathered health plan status under ACA or otherwise complies with ACA. Wellmark will not be held liable for any penalties or other losses resulting from any Employer Administered Funding Arrangement. For purposes of this paragraph, an "Employer Administered Funding Arrangement" is an arrangement administered by an employer in which the employer contributes toward the member's share of benefit costs (such as the member's deductible, coinsurance, or copayments) in the absence of which the member would be financially responsible. An Employer Administered Funding Arrangement does not include the employer's contribution to health insurance premiums or rates.