The Consolidated Appropriations Act, 2021, (CAA) mandates the submission of data related to healthcare and pharmacy spending and premium data by employer-sponsored health benefit plans. Star Marketing and Administration, Inc., will submit this data on their behalf, but we are requesting their input to complete this accurately.
To help self-funded plans comply with the Prescription Drug Data Collection provision of the CAA, we are asking employers to submit their group health plan number reported on IRS Form 5500, if applicable, by Oct. 21, 2022.
Communications
An email requesting the plan number was distributed today to:
- Brokers whose clients are affected by the provision
- Employers who sponsor any self-funded group health plan currently administered by Star Marketing and Administration, Inc.
- Any group that was active anytime in 2020 and 2021 that isn’t currently active
The email to employers will include a link to a page requesting the group plan number on Form 5500 and contact information.
More on the CAA provision
The CAA requires insurance companies and employer-based plans to submit information to the federal government about prescription drug costs for a two-year period (2020 and 2021) by Dec. 27, 2022. This applies to plans, even ones no longer administered by us. Plan sponsors that fail to report this required data may be subject to penalties under both ERISA and the Internal Revenue Code.
What action should employers take?
- If employers file a Form 5500 for their plan, they report a three-digit plan number, which is required as part of the data collection for the CAA provision. Employers should click on the button in the email that states “SUBMIT PLAN NUMBER,” fill out the form and submit to us by clicking “Done.”
- If employers do not file a Form 5500, no submission is needed in October.
- Groups that are no longer active can call us at 800.522.1246, ext. 35380, with questions.
Visit the Federal Mandates resource page on our website to learn more.
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