Monthly Archives: August 2014

The Employer Mandate ( pay or play) updated!!

The Employer Mandate

Originally scheduled to go into effect in 2014, the mandate has twice been delayed by the administration, which says it needed more time to implement the provision.

The Obama administration has now released guidance and draft forms instructing employers on how to comply with the employer mandate under the Patient Protection and Affordable Care Act -(ACA) The 13-page draft instructions are posted on the IRS website and are considered a final step to complying with the mandate.

The IRS documents include drafts of Form 1095-A, the Health Insurance Marketplace Statement; Form 1095-B, Health Coverage; Form 1095-C, Employer Provided Health Insurance Offer and Coverage; and the instructions for those forms

he materials have been a long time coming on the twice-delayed PPACA provision. The delay in guidance also raised concerns that the employer mandate would be delayed a third time, or killed altogether.

With the latest delay, announced in February of this year, employers with between 50 and 99 employees have until January 2016 to offer health insurance or pay a fine, and employers with more than 100 employees must offer insurance or pay a fine of $2,000 per worker by January 2015.

Employers with fewer than 50 employees are exempt.

For more information. Contact:

ERIC WALTERS,
CELL: 602-616-1660
Eric Walters Insurance Services
14482 N 100th Place,
SCOTTSDALE AZ 85260
TEL:(480)-657-8595/FAX:(888)-397-0796
Email: ewinsurance@gmail.com/www.ewconsultant.biz

New Orientation Period for health plans!

New Orientation period for health plans

Federal agencies are offering employers a benefits-free orientation period option in a new batch of final regulations.

The Internal Revenue Service (IRS), the Employee Benefits Security Administration (EBSA) and the U.S. Department of Health and Human Services (HHS) have published the regulations, Ninety-Day Waiting Period Limitation (CMS-9952-F2) (RIN 0938-AR77), in the Federal Register.
The new regulations implement part of the “employer shared responsibility” provisions created by the Patient Protection and Affordable Care Act (PPACA).

Section 4980H of the Internal Revenue Code (IRC) now calls for most large and midsize employers to offer “minimum essential coverage” (MEC) to employees. If employers fail to offer MEC, and some workers end up qualifying for Medicaid or for PPACA public exchange plan subsidies through the new PPACA public exchange system, the employers could end up having to pay penalties. An employer can keep a new employee out of the employer coverage mandate calculations during a 90-day waiting period.
The Obama administration has said it wants to start applying the mandate provision to employers with 100 or more employees on Jan. 1, 2015. If agencies stick to that schedule, employers with 51 to 99 employees may be able to wait until Jan. 1, 2016, to comply if they agree to abide by transition relief program rules. Midsize employers that want to cut back on health benefits might have to start complying with the mandate in 2015. In February, the IRS, EBSA and HHS published general waiting period regulations.

The agencies developed the new regulations to respond to employers and others who asked them to come up with rules for employee orientation periods.
The agencies say in the preamble to the new final regulations that they want to be able to let employers add a “reasonable and bona fide employment-based orientation period” to the 90-day waiting period without letting an employer use an orientation period as a subterfuge to put off providing coverage.

The agencies are assuming that a typical bona fide orientation period will last one month — 28 to 31 days, or about one-third of the 90-day waiting period provided by PPACA.
In some cases — if, for example, an employee in orientation needs more than one month to qualify to become an active employee — an employer could exclude the employee in orientation from the active-employee count for a longer period. “A plan may impose substantive eligibility criteria, such as requiring the worker to fit within an eligible job classification or to achieve job-related licensure requirements,” officials say in the preamble. But the plan “may not impose conditions that are mere subterfuges for the passage of time,” according to officials.
More information, contact:-

ERIC WALTERS,
CELL: 602-616-1660
Eric Walters Insurance Services
14482 N 100th Place,
SCOTTSDALE AZ 85260
TEL:(480)-657-8595/FAX:(888)-397-0796
Email: ewinsurance@gmail.com/www.ewconsultant.biz