More healthcare-related regulatory news for plan sponsors, including links to detailed information.
IRS guidance on application of Section 4890D
The Internal Revenue Service (IRS) has issued Notice 2015-17 which provides transition relief from the assessment of excise tax under section 4980D for small employers (in particular, employers that are not applicable large employers) that reimburse or pay a premium for an individual health insurance policy for an employee. Notice 2015-17 also addresses the treatment for federal tax and for market reform purposes of arrangements reimbursing premiums of 2%-shareholder employees of S corporations. Finally, Notice 2015-17 addresses application of the market reforms to certain employer arrangements to fund Medicare premium payments or to provide a TRICARE-related health reimbursement arrangement (HRA).
To read the entire notice, click here.