HR Connections Michigan 2012 - (Page 9)
By Roger Webster, Strategic Services Group, Rochester Hills, Michigan n the shadow of the Supreme Court ruling due this summer, health care reform continues to bring changes for employers and their health plans. Employers need to determine if they have a “grandfathered plan” and whether their plan will maintain that status in 2012. If certain plan changes are made, the plan will no longer be grandfathered. A non-grandfathered plan must comply with various health care reform provisions. For non-grandfathered plans starting on or after Aug. 1, 2012, certain women’s preventative health services must be covered with no cost sharing. The deadline to provide a Summary of Beneﬁts and Coverage (SBC) has been extended until Sept. 23, 2012. Plans and issuers must provide the SBC to participants and beneﬁciaries who enroll or re-enroll during an open enrollment period beginning with the ﬁrst day of the ﬁrst open enrollment period that begins on or after Sept. 23, 2012. For participants who enroll in coverage other than through an open enrollment period (for example, newly eligible individuals and special enrollees), plans and issuers must provide the SBC beginning on the ﬁrst day of the ﬁrst plan year that begins on or after Sept. 23, 2012. Once the SBC requirement becomes eﬀective, plans must provide a 60-day notice of any material modiﬁcations to the plan that are not related to renewals of coverage. For plan year 2012, employers that issue 250 or more W-2 Forms must report the aggregate cost of employer-sponsored group health coverage on employees W-2 Forms. The requirement is optional for smaller employers until further guidance is released.
Employers Should Know
Health Care Reform in 2012
Rebates may be available in August 2012 for fully insured plans if they qualify under the new medical loss ratio rules. The rebates must be used for the beneﬁt of plan members, which may include reducing premium payments for employees. Small employers that qualify for the tax credit provided by health care reform can claim it by ﬁling Form 8941 with their annual tax ﬁlings. Employers with fewer than 25 employees and average annual wage of less than $50,000 generally qualify. Some states have required employers to impute income for covering dependents up to the age of 26. All states should now conform to federal tax law which permits the dependent coverage to be provided tax free but employers should check for changes with their state tax authority. Beginning Jan. 1, 2014, group health plans will no longer be able to impose annual limits on the value of essential health beneﬁts. However, until then, certain minimum annual limits are permitted. Unless your plan received a waiver of the annual limit requirements, you should conﬁrm that your plan is in compliance with the minimum annual limits set forth by the legislation. ■ Please contact Roger Webster at Strategic Services Group (248-601-3600 or roger@ strategicservicesgroup.org) for additional health care reform information.
Sources of information used for this article include Zywave, HealthCare.gov, and IRS.gov.
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Table of Contents for the Digital Edition of HR Connections Michigan 2012
State Director & Conference Chair Messages
Business as if People Mattered
What Employers Should Know
Social Media in the Workplace
HR and Marketing...
Summary of Topics
Products & Services
Index to Advertisers/ Advertisers.com
HR Connections Michigan 2012