Affordable Care Act employer reporting requirements are effective January 1, 2015.  Penalties may be assessed up to $100 per incorrect return to the IRS, or for incorrect information reported to an individual, employee or equivalent, that is eligible for group health coverage. However, penalties may be reduced if they are corrected. Employers have until August of each reporting year to make corrections.

Those impacted employers must report the cost of care in any group plans they managed.  The U.S. Department of Treasury and the Internal Revenue Service (IRS) oversee and administer employer reporting requirements.   The final rulemaking as of March 2014 details in 26 U.S. Code § 6055 – “Reporting of health insurance coverage” requires health insurance issuers, certain employers, and others report certain data.

“Every person who provides minimum essential coverage to an individual during a calendar year shall, at such time as the Secretary may prescribe, make a return described provide minimum essential coverage to individuals must report to the IRS information…” about the type and period of coverage and furnish the information in statements to covered individuals.

§ 6055 provides reporting requirements for large employers who employ at least 50 full-time or full-time equivalent employees. Section 6056 requires those employers to report information about health care coverage. This is provided for in 26 U.S. Code § 4980H – “Shared responsibility for employers regarding health coverage.”  Additionally, large employers must supply related statements to employees that they may use in determining which months of the year they are able to claim on individual returns for a premium tax credit as specified in 26 U.S. Code § 36B – “Refundable credit for coverage under a qualified health plan.”

If employers provide assistance in paying for any out of pocket costs, The Accountable Care Organization and other value based care structures, as well as ICD-10 may play a role in recalculation of total employer costs, since out of pocket costs may change in value based care or revised definitions of diagnosis or inpatient procedure codes provided for by ICD-10.

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