Regulation

Treasury, IRS proposes rules on insurer, employer reporting under ACA

140px-US-DeptOfTheTreasury-Seal.svgThe U.S. treasury and IRS issued on Thursday proposed rules that would implement the Affordable Care Act’s information reporting requirements for insurers and certain employers.

“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,” Assistant Secretary for Tax Policy Mark J. Mazur said. “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.”

Under the ACA and Internal Revenue Code, employers of a certain size, insurers and self-insuring employers are required to adhere to information reporting standards. Employers, insurers and other reporting entities are required to provide information about covered individuals and the company itself, a list of information about coverage offered to each individual monthly

The proposed rules are designed to streamline the information reporting process. New provisions include replacing employee statements with W-2 reporting on offers of employer-sponsored health coverage, allowing employers to report the specific cost to an employee of purchasing employer-sponsored coverage if the cost is above a specific dollar amount and limited reporting for certain self-insured employers providing no-cost coverage to employees and their dependents.

Comments on the proposal will be accepted through early November. After the final rules are published, reporting entities will be encouraged to implement information reporting next year, when reporting will be optional.

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