Treasury Issues Proposed Rules for Information Reporting by Employers and Insurers
Friday, September 6, 2013
Public Comments on Additional Ways to Simplify and Streamline Reporting
WASHINGTON -Today, the U.S. Department of the Treasury
and the Internal Revenue Service issued proposed regulations to implement the
information reporting requirements for insurers and certain employers under the
Affordable Care Act (ACA). The regulatory proposals reflect an ongoing
dialogue with representatives of employers, insurers, other reporting entities,
and individual taxpayers.
"Today’s proposed rules enable
us to continue engaging on how best to implement the ACA reporting requirements
in a more streamlined and focused manner,” said Assistant Secretary for Tax
Policy Mark J. Mazur. "We will continue to consider ways, consistent with
the law, to simplify the new information reporting process and bring about a
smooth implementation of those new rules. Doing so will help ensure that
the ACA effectively and efficiently delivers its historic tax benefits that
promote health security for all Americans.”
The ACA provides for
information reporting (under Internal Revenue Code section 6055) by insurers,
self-insuring employers, and other parties that provide health coverage.
It also provides for information reporting (under Code section 6056) by employers
that are large enough to be subject to the employer shared responsibility
provisions regarding the health coverage they offer their full-time
employees.These proposed regulations reflect comments received and an
ongoing dialogue with stakeholders, including plan sponsors, many of whom
already offer their full-time workforce coverage far exceeding the minimum
employer shared responsibility requirements. Nearly 95 percent of employers
with more than 50 full-time employees already offer coverage to their employees.
The proposed rules issued today
describe a variety of options to potentially reduce or streamline information
reporting, such as:
·Replacing section 6056 employee
statements with Form W-2 reporting on offers of employer-sponsored coverage to
employees, spouses, and dependents.
·Eliminating the need to determine
whether particular employees are full-time if adequate coverage is offered to
all potentially full-time employees.
·Allowing employers to report the
specific cost to an employee of purchasing employer-sponsored coverage only if
the cost is above a specified dollar amount.
·Allowing self-insured group health
plans to avoid furnishing employee statements under both section 6055 and
section 6056 by furnishing a single substitute statement.
·Limited reporting for certain
self-insured employers offering no-cost coverage to employees and their
·Permitting health insurance issuers to
forgo reporting under section 6055 on individual coverage offered through a
Marketplace because that information will be provided by the Marketplace.
·Permitting health insurance issuers,
employers, and other reporting entities under section 6055 to forgo reporting
the specific dates of coverage (instead reporting only the months of coverage),
the amount of any cost-sharing reductions, or the portion of the premium paid
by an employer.
The statute calls for
employers, insurers, and other reporting entities to report, among other things:
·For section 6055:
oInformation about the entity providing
coverage, including contact information.
oA list of individuals with identifying
information and the months they were covered.
·For section 6056:
oInformation about the applicable large
employer offering coverage (including contact information for the employer and
the number of full-time employees).
oA list of full-time employees and
information about the coverage offered to each, by month, including the cost of
Stakeholders are invited to submit comments on the section 6055
and 6056 proposed rules through early November. The public comments will be
taken into account in developing final reporting rules.
Once the final rules have been
published, reporting entities will be encouraged to voluntarily implement
information reporting in 2014 (when reporting will be optional), in preparation
for the full application of the reporting provisions in 2015.Real-world
testing of reporting systems in 2014 will contribute to a smoother transition
to full implementation in 2015.
The proposed rules can be
viewed on the Federal Register:https://www.federalregister.gov/public-inspection.