Additional information about the employer mandate delay is now available. On July 9, 2013, the IRS published Notice 2013-45. The notice includes four Q&As providing as follows:
- Additional guidance for the reporting requirements is expected later this summer. Employers, insurers, and other reporting entities will be encouraged to voluntarily comply with the information reporting provisions for 2014.
- No employer shared responsibility payments (penalties) will be assessed for 2014.
- This delay does not affect individuals’ access to the premium tax credit when purchasing individual coverage through the Exchange.
- This delay does not affect any other ACA provisions.
On July 2, 2013, the Department of Treasury announced that the Obama Administration will delay penalties under the Employer Shared Responsibility provision of the ACA along with certain mandatory reporting requirements related to employer-sponsored coverage until 2015. To read the announcement, click here.
The delay was in response to comments about the complexity of the requirements and the need for more time to implement them effectively. According to the Administration, additional details will be available this week.
We will update this site with more information once it’s available.
This week, active Starmark® employers with a self-funded health plan design who are required to pay the Patient-Centered Outcomes Research Institute (PCORI) fee will receive a letter providing their group’s “average covered lives” (using the Snapshot Count method). As a courtesy, the Broker of Record will receive a duplicate copy of the letter sent to their group.
The Patient Protection and Affordable Care Act requires health insurance issuers and plan sponsors of self-funded group policies be assessed an annual PCORI fee, previously known as the comparative effectiveness research fee.
Plan sponsors of self-funded health plans are responsible for filing and paying the PCORI fee. Sponsors of plan years ending October 1, 2012 through December 31, 2012, are required to send the fee to the IRS on Form 720 by July 31, 2013.
For fully insured plans, Trustmark Life Insurance Company is responsible for filing the form and paying the required PCORI fee. The first filing is due July 31, 2013.
Click here to view a sample letter.