Healthcare Legislative Update 2018

• Individual Health Insurance Mandate – no penalty in 2019
• ACA Reporting Compliance – IRS crackdown – 30,000 letters have been sent to employers with 50+ employees
• ACA Affordability Measure – 9.56% 2018, 9.86% 2019 – Employers with 50+ employees cannot charge employees more than 9.86% of their gross wages for employee only health insurance coverage in 2019.
• AHP – Association Health Plans easier to form – Trump Administration Issued Final rule expanding the availability of AHP’s to small businesses.
• Cadillac Tax delayed until 2022 – Will require 40% tax on health plans that cost more than $10,200 (individuals) and $27,500 (families).
• HSA Improvement Act – The proposed legislation would provide more pre-deductible coverage, such as primary care office visits, medications for chronic conditions and preventive tests.
• IRS returned 2018 HSA contribution limit to $6900
• Proposal to change Form 5500 filing requirements – Target 2019
  • Ends small employer exclusion for filing – current rule applies to employers with 100 or more participating employees only.
• Self-Funded PCORI fee due to IRS by July 31^st – SF clients must submit the Patient-Centered Outcomes Research Institute fee to IRS using Form 720 by July 31^st. Your insurance carrier will pay the PCORI fee for fully insured clients.  NOTE: Health Reimbursement Accounts (HRAs) and certain Flexible Spending Accounts (FSAs), when funded by the employer, are considered self-funded group health plans.
• Qualified Small Employer Health Reimbursement Arrangements (QSE HRA) –Recent legislation allows for a new type of HRA allowing small employers (<50 employees) to reimburse employees tax-free for health insurance. However, very specific compliance and administration rules apply, and due to skyrocketing individual plan rates, a small group plan may still make more sense.

Wondering if any of this applies to your company? As always, contact your team at DDI. We are here to help.