Publication | Employee Benefits Update

Employee Benefits Update: Health Care Reform Essential Health Benefits, Tax Credit, Medical Loss Ratio, CO-OP, and Early Retiree Programs

Here is your latest Employee Benefits Update from Cindy Van Bogaert, Boardman & Clark LLP.  This Employee Benefits Update provides information on Health Care Reform developments involving essential benefits, small business health care tax credit, medical loss ratios, CO-OPs, and the Early Retiree Reimbursement Program.

The government issued additional Health Care Reform guidance over the past months including the following:

-  Essential benefits.  The definition of “essential health benefits” in Health Care Reform has been a looming question.  The government has issued a bulletin indicating that it intends to look to state law to establish standards.  See http://www.healthcare.gov/news/factsheets/2011/12/essential-health-benefits12162011a.html and http://cciio.cms.gov/resources/files/Files2/12162011/essential_health_benefits_bulletin.pdf.

- Small business health care tax credit.  Some small employers may qualify for a tax credit based on health care coverage.  The IRS issued the 2011 Form 8941 and instructions:  http://www.irs.gov/pub/irs-pdf/f8941.pdf and http://www.irs.gov/pub/irs-pdf/i8941.pdf.

- Medical loss ratios.  The General Accounting Office issued a report addressing insurer compliance with these Health Care Reform standards. http://www.gao.gov/new.items/d1290r.pdf.

- CO-OPs.  The government issued final regulations addressing development of the CO-OP program to provide loans to new insurers under Health Care Reform. For more information, see  http://cciio.cms.gov/resources/factsheets/coop_final_rule.html.

- Early Retiree Reinsurance Program.  Plan sponsors were provided information on a cut-off date for claims under this program.  For more information, see http://www.errp.gov/newspages/20111209-updated-payment-processing-new-incurred-date.shtml.  The government also issued an update on payouts.  See http://cciio.cms.gov/resources/files/Files2/12092011/errp_disbursement_12_02_2011_508.pdf

What should employers do?

1. Watch for continuing guidance on Health Care Reform.

2.  File for tax credits that may be available.

3. If you are an employer participating in the Early Retiree Reinsurance Program, you should monitor claims submission deadlines.

 

This Employee Benefits Update is not legal advice. Individuals should seek advice based on their particular circumstances from their own counsel.Do you have any colleagues who might like to receive their own copies of this newsletter?  If so, please provide us with their names and e-mail addresses, and we will contact them to confirm their interest. You also may change your e-mail address at any time.  Please send your instructions to me at cvanbog@boardmanclark.com.  You also may phone me at (608) 283-7543.

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