Health Care Reform, also called the Affordable Care Act, began affecting employer health care plans beginning in 2010. At this time there are many items that have become part of an employer’s planning and expense for their employee benefit plans.
The following are updates and changes applicable to the following years:
- The individual mandate penalty for not carrying Minimum Essential Coverage (MEC) reduces to 0% effective January 1, 2019.
- Forms 1094 and 1095 are still required to be prepared and distributed to employees
- Allows states to permit the sale of short-term, limited medical plans to individuals.
- Health Insurer Tax suspended in 2019.
- The so-called “Cadillac Tax” deferred two years to 2022. The taxable amount is at 40% for amounts of exceeding $10,200 for individual coverage and $27,500 for family coverage.
- Medical device tax, 2.3% on the sale of certain devices, is effective 1/1/2020.
- The Children's Health Insurance Program (CHIP) is extended for six additional years.
- No current Federal items scheduled
- The Cadillac Tax on health care scheduled to go into effect. The taxable amount is at 40% for amounts of exceeding $10,200 for individual coverage and $27,500 for family coverage.
The information and opinions expressed are those of the author. TeBG, LLC provides general information and background on selected topics. Please seek professional legal and tax advice from your own advisors.