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Cadillac (n.) best of its kind; standard of excellence

What else would you expect big government to call a 40% tax that is expected to hit 25% of employees in 2018 and 42% by 2028? The last major piece of Obamacare will impact consumers, corporations and union members.

The Impact? Middle-class workers could see a reduction in benefits. Companies in areas with high medical costs are more likely to be subjected to the Cadillac tax than those in lower-cost areas. Same for employers with unionized workers. Under scrutiny to be cut from the benefit package are the FSA, HSA and HRA accounts which provide tax-free dollars for out-of-pocket health costs. The law counts those contributions toward the thresholds for triggering the tax.

The Cadillac tax is 40 percent of the value of employer-sponsored plans that exceeds $10,200 for individual coverage and $27,500 for family coverage. The tax is levied on insurers and plan administrators, who are expected to pass it back to employers. The 40 percent rate is well above the income tax rates for most workers. If they don’t know it already, employees will learn, Obamacare came with Obamaco$t.

 

Employee Benefit Advisors provides employee benefits. We are a broker helping companies with their Health & Welfare Benefits. We also help companies revaluate PEO Services, deciding if a PEO is a good choice and if so selecting and implementing the PEO.

1095-C Reporting

This continues our review of the ACA reporting requirements. In our previous blog Employee Benefit Advisors mentioned we decided to do a little review because we’re getting questions from employers about their reporting requirements.

Who files Form 1095-C? Sponsors of both self-insured plans and insured plans must file Form 1095-C.  Payroll providers should have the capability to report the required information.

What does Form 1095-C report? The number of full time employees for each calendar month and lists coverage information for each full time employee.

What will the IRS do with the information reported on Form 1095-C? In 2015 employers with 100 or more (50 or more beginning in 2016) full time employees (including FTEs) must provide affordable coverage that provides MEC or be subject to penalty taxes for employees who receive subsidized coverage.  The information will be used to determine whether a penalty tax is to be assessed.

Are companies with fewer than 50 full time employees required to file Form 1095-C? No, only companies with 50 or more full time employees* are required to file. However only companies with 100 full time employees* are subject to the “play or pay” penalty for 2015. In 2016 companies with more than 50 full time employees* will be subject to the “play or pay” penalty. (*Including FTEs)

What Form 1095-C filing requirements apply to FSAs, HSAs or HRAs? Some employer contributions to an FSA, HSA or HRA can count toward the calculation of minimum value and therefore may affect 1095-C filing.

Note: Our previous blog discussed 1095-B reporting. If a plan sponsor of a self-insured plan is also required to file Form 1095-C, the Form 1095-B and Form 1095-C information can be combined onto one Form 1095-C filing.

 

Employee Benefit Advisors provides employee benefits. We are a broker helping companies with their Health & Welfare Benefits. We also help companies revaluate PEO Services, deciding if a PEO is a good choice and if so selecting and implementing the PEO.

1095-B Reporting

Employee Benefit Advisors decided to do a little review because we’re getting questions from small employers about their reporting requirements.

Who files Form 1095-B? The insurance company is required to file Form 1095-B if your company sponsors an insured plan. If self-insured, the plan sponsor is required to file Form 1095-B.

What information does Form 1095-B report? 1095-B reports the name, address and social security number of all individuals (employees, spouses, dependents and others) who are covered under an employer’s medical plan and the number of months during which the individual had at least one day of coverage.

What will the IRS do with the information reported on Form 1095-B? The IRS will use the information to verify which individuals have MEC through an employer and are therefore not subject to the individual mandate penalty tax.

Are companies with less than 50 full time employees (including FTEs) required to file Form 1095-B? Yes, the filing requirement applies to all employers who provide health coverage to their employees.

Are there 1095-B filing requirements for FSAs, HSAs or HRAs? No because by themselves they do not provide MEC.

What is the date that these forms must be filed? The forms must be filed with the IRS by February 28 (March 31 if reporting electronically) and copies of the forms must be provided to individuals by January 31.

 

Employee Benefit Advisors provides employee benefits. We are a broker helping companies with their Health & Welfare Benefits. We also help companies revaluate PEO Services, deciding if a PEO is a good choice and if so selecting and implementing the PEO.

The Future of Vision

6 eye care and eye wear innovations that will alter your view of vision benefits

    1. Accu-Fit Technology – reads the shape of your eyes and automatically recommends the best prescription
    2. Glasses.com – takes a 3D image of your face and allows you to look at up to four pairs of frames from every angle
    3. Onsite or pop-up clinics – setting up a store right in your office/plant, offering onsite exams; promotes both the importance of regular eye exams and your company’s wellness program
    4. “Healthy” wearable tech – your glasses will be your hub for your personal health and wellness providing you with your blood pressure blood sugar levels, etc… and automatically share the data with your doctor
    5. Smart Contacts – contact lenses that use tears to measure blood sugar levels for patients with diabetes (no more pricking your finger); for glaucoma patients lenses that measure intraocular pressure sending an alert to your smartphone that it’s time to administer eye drops
    6. Online Exams – emerging technology that allows for a refraction (used to determine the level of correction) to be tested online

Thank you Shauna Whittingham, Eyemed.

Employee Benefit Advisors provides employee benefits. We are a broker helping companies with their Health & Welfare Benefits. We also help companies revaluate PEO Services, deciding if a PEO is a good choice and if so selecting and implementing the PEO.

Obamaco$t – What is hiding in the numbers.

Aetna’s Health Reform Weekly published a New Kaiser Family Foundation research found that single and family premiums for employer-sponsored health insurance in 2015 rose by an average of 4 percent, but the survey also found that workers’ out-of-pocket costs are rising at a much faster rate, with a 67 percent increase in deductibles since 2010. – The hidden cost of Obamacare. Ouch!

Obamaco$t – Rate Increases for 2016

Health insurance companies were seeking rate increases of 20 percent to 40 percent or more. Reason cited, new customers under the Affordable Care Act are seeking more treatment than expected. Increases of approximately half the amount requested is generally what state insurance agency approved. Some states fairing better than others.

The proposed increases indicate health carriers are still adjusting to the impact of the Affordable Care Act. The proposed increases, supported by reams of actuarial data, are fueling debate about the effectiveness of the health law.

A study by the Kaiser Foundation suggests that consumers would see relatively modest increases in premiums if they were willing to switch plans. However, to get low premiums, consumers may need to accept a more limited choice of doctors and hospitals and if they switch plans, there is no guarantee that they can keep their doctors.

 

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

Useful App: GoodRx

Drug prices vary wildly between pharmacies.

GoodRx finds the lowest prices and discounts. How?

Compare prices – Prescription prices can vary widely from pharmacy to pharmacy. The app allows you to compare costs for every FDA-approved prescription drug at more than 70,000 US pharmacies.

Find free coupons – Show the coupon displayed in the app at the pharmacy.

Shows the lowest price at each pharmacy near you.

The app is 5 star rated and easy to use. GoodRx was rated as one of the 9 Best Shopping Apps in June 2015 by AllYou and has been featured on: CNN, Prevention Magazine, Forbes, ABC News and Good Housekeeping.

How GoodRx Works (1:23)

This app is great for those with or without insurance. – Many insurance policies carry HSA qualified high deductibles. Identifying lower prescription costs is especially helpful for those that do not reach their deductible. App users can identify those pharmacies offering lower costs medications.

 

Employee Benefit Advisors provides employee benefits. We are a broker helping companies with their Health & Welfare Benefits. We also help companies revaluate PEO Services, deciding if a PEO is a good choice and if so selecting and implementing the PEO.

Top 8 Issues for Employers under ACA

To be fully compliant employers face 8 key requirements.

  1. All “applicable large employers” are subject – The trick here is properly counting part-time and variable hour employees.
  2. January 1, 2015 was the “effective date” for the new requirements. – Even if employers qualify for temporary relief they must report 2015 calendar year data to the IRS.
  3. Employers must be able to identify their “full-time employees”. – The rules include look-back and stability periods to determine whether variable hour employees need to be offered coverage.
  4. IRS Form 1095-C is used to report employee-level data to the IRS. – This reporting uses a complicated set of codes and must be provided directly to employees and filed with the IRS. The form reports on a monthly basis whether the employer offered medical coverage to the employee, whether the coverage provided minimum value and was affordable.
  5. Self-Insured Plans need to report coverage data for employees and any covered dependents. – Regardless of the number of employees employers are required to complete Part III of Form 1095-C
  6. IRS Form 1094-C is used to report employer-level data to the IRS. – 1094-C is the “transmittal letter” to the IRS with employer-level demographic data including exemptions to the employer mandate.
  7. Employers must disclose their “controlled group” on the Form 1094-C. – The names and EINs of other ALE members must be listed. (This is the first time the IRS has required this disclosure.)
  8. Employers filing 205 or more Form 1095-C must file electronically. – The IRS required filers to use its electronic submission system. The complexity of this system will make it extremely difficult for large employers to file on their own behalf.

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

New Law Increases ACA Information Reporting Penalties

The Trade Preferences Extension Act of 2015 will increase the penalties employers are subject to under the Affordable Care Act’s information reporting provisions.

Information Reporting Penalties

Self-insuring employers that provide minimum essential health coverage (regardless of size) and large employers with 50 or more full-time employees (including full-time equivalents) that fail to comply with the information reporting requirements may be subject to the general reporting penalty provisions under Internal Revenue Code (IRC) sections 6721 (failure to file correct information returns) and 6722 (failure to furnish correct payee statements).

The penalty for failure to file an information return and the penalty for failure to provide a correct payee statement is increased from $100 to $250 for each return which such failure. The total penalty imposed for all failures during a calendar year cannot exceed $3,000,000, increased from $1,500,000.

Employers are required to report for the first time in early 2016 for calendar year 2015. The law will apply to returns and statements required to be filed after December 31, 2015.

Question: What does the Trade Preferences Extension Act of 2015 have to do with the Affordable Care Act?

 

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

Dark Chocolate – just what the Doctor ordered!

Just 30 calories per day of chocolate may be enough to help reduce your blood pressure. As far as serving sizes go, that’s about a Hershey’s Kiss worth.

But you have to eat the right kind of chocolate, according to Joseph Maroon, MD, author of The Longevity Factor. He recommends nonsweetened or minimally sweetened dark chocolate that’s at least 70 percent cocoa.

Dark Chocolate: The Benefits
In addition to the chocolate and blood pressure connection, dark chocolate can also help reduce atherosclerosis and blood clotting, aid blood flow, contribute to an overall reduction in heart attacks, and improve cholesterol levels. And it’s all thanks to the powerful antioxidants found in the cocoa bean.

More Good Reasons to Eat Chocolate
As if you need them . . .
• For better blood sugar. Chocolate enhances the effect of insulin and sugar utilization.
• For a finer complexion. Yep, fewer wrinkles and fine lines.

PS – Just to be safe, Employee Benefit Advisors enjoys 60 calories a day.
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This article appeared on Sharecare. It is just one of the many fun facts that will draw you back to the site on a regular basis. What is Sharecare? Sharecare was developed by Dr. Mehmet Oz and Jeff Arnold as an online health profile, just like you have social, professional, and creative profiles.

www.sharecare.com – An interactive platform that provides expert health information and allows you to ask questions and get answers.

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.

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