On the Edge of Compliance - November 2019
Individual Coverage HRAs - Paying Individual Insurance Premiums
Beginning in 2020, employers of all sizes may implement a new HRA design – an individual coverage HRA (ICHRA) – to reimburse their eligible employees for insurance policies purchased in the individual market or Medicare premiums.
Final rules for how employers may offer ICHRAs have been released by the DOL, HHS and the Treasury Departments. Learn more here!
See also, Comparing Different Types of HRAs.
Draft Forms for 2019 ACA Reporting Released
The 2019 draft forms and instructions for Employer Reporting have been released by the IRS. The draft 2019 forms and instructions are substantially similar to the final 2018 versions. Please note that Section 6055 reporting continues to be required, despite the fact that the individual mandate penalty has been reduced to $0.
Employers should become familiar with these forms for reporting for the 2019 calendar year. However, these forms and instructions are draft versions only, and should not be filed with the IRS or relied upon for filing.
IRS Announces Benefit Plan Limits for 2020
The IRS recently announced cost-of-living adjustments to the annual dollar limits for various welfare and retirement plan limits for 2020. Although some of the limits will remain the same, most of the limits will increase for 2020. The annual limits for the following commonly offered employee benefits will increase for 2020:
- HDHPs and HSAs
- Transportation fringe benefit plans
- 401(k) plans
Your 2020 ACA Compliance Checklist
The ACA has made a number of significant changes to group health plans since the law was enacted in 2010. Certain changes to some ACA requirements take effect in 2020 for employers sponsoring group health plans, such as increased dollar limits.
Please find an ACA compliance checklist for 2020 here!
Filed Under: Benefits Briefs