Requests 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:
section 6056 employee statements with Form W-2 reporting on offers of
employer-sponsored coverage to employees, spouses, and dependents.
the need to determine whether particular employees are full-time if adequate
coverage is offered to all potentially full-time employees.
employers to report the specific cost to an employee of purchasing
employer-sponsored coverage only if the cost is above a specified dollar
self-insured group health plans to avoid furnishing employee statements under
both section 6055 and section 6056 by furnishing a single substitute statement.
reporting for certain self-insured employers offering no-cost coverage to
employees and their families.
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.
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:
o Information about the entity
providing coverage, including contact information.
o A list of individuals with
identifying information and the months they were covered.
o Information about the applicable
large employer offering coverage (including contact information for the
employer and the number of full-time employees).
o A 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