I have a question for you. What is the most basic principle of insurance? Overinsurance. Some pay more than what they use so others can pay less. But what happens when “more” becomes too much, too often? What happens when an employer gets tired of continually subsidizing an insurance pool it consistently outperforms? What is a chronically overinsured employer to do? Continue reading Captives: Cutting Chronic Costs Through Cohesion
How is it that we make purchases on Amazon.com with a touch on a smartphone, yet many of us still buy group health insurance with paper and a pen? The discrepancy between the two different experiences is confounding. Yes, I would like to clarify that there are fundamental differences between buying Cards Against Humanity on Amazon.com and choosing the right health plan for you and your dependents. However, the marketplace tells us that those two different experiences will be converging. Employers are adopting technologies to more efficiently and accurately manage their benefits and human resource processes and employees are demanding that they do so. Continue reading Online Consumerism and Private Healthcare Exchanges
Q. Does an employer need to complete Form 1095-C for an employee who terminates employment mid-year causing a COBRA qualifying event?
A. Yes, Form 1095-C is required to be completed in the year that an employee terminates. When employment termination is the COBRA-qualifying event, COBRA is never reported as an offer of coverage – even if the former employee actually enrolls in COBRA coverage. Per the IRS’ final instructions, report as follows for the months that COBRA was offered:
- Line 14 – Always use Code 1H (no offer of coverage).
- Line 15 – Leave Line 15 blank. You do not report cost information.
- Line 16 – Always use Code 2A (employee not employed during the month).
- Part III – Employers with self-insured plans will complete this section for former employees and dependents that enroll in COBRA and will continue to report for as long as COBRA coverage is in force.
By: Christine Gaiser, Senior Advisor and Simone Torneo, Senior Advisor
Q: Which employers are subject to the IRS reporting requirements?
A: All “Applicable Large Employers” (ALE’s) have ACA annual reporting responsibilities. An ALE is generally one with 50 or more full-time employees, including full-time equivalent employees. All ALE’s will need to provide the IRS and their full-time employees information returns concerning whether and what health insurance was offered to their full-time employees. Remember that regardless of size, all employers that provide self-insured health coverage to their employees must file an annual return reporting certain information for each employee they cover. Continue reading FAQ’s for Employer Reporting 6055 and 6056