More healthcare-related regulatory news for plan sponsors, including links to detailed information.
IRS releases Draft 2018 IRS Form 1095-C and Form 1094-C
The Internal Revenue Service (IRS) has released Draft 2018 IRS Form 1095-C: Employer-Provided Health Insurance Offer and Coverage and Draft 2018 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns. The instructions have not been released that contain the due dates of the forms.
GAO-defined “employer” under Section 3(5) of ERISA
The Government Accountability Office (GAO) reviewed the new rule from the Employee Benefits Security Administration of the U.S. Department of Labor (DOL) on the definition of “employer” under section 3(5) of ERISA—Association Health Plans. The GAO found that (1) the final rule (a) establishes under Title I of ERISA additional criteria under ERISA section 3(5) for determining when employers may join together in a group or association of employers that will be treated as the “employer” sponsor of a single multiemployer “employee welfare benefit plan” and “group health plan,” as those terms are defined in Title I of ERISA; (b) states that, by establishing a more flexible commonality of interest test for the employer members than DOL had adopted in sub-regulatory interpretive rulings under ERISA section 3(5) and otherwise removing undue restrictions on the establishment and maintenance of Association Health Plans (AHPs) under ERISA, the regulation facilitates the adoption and administration of AHPs and expands access to affordable health coverage, especially for employees of small employers and certain self-employed individuals; and (c) sets out the criteria that would permit, solely for purposes of Title I of ERISA, certain working owners of an incorporated or unincorporated trade or business, including partners in a partnership, without any common-law employees, to qualify as employers for purposes of participating in a bona fide group or association of employers sponsoring an AHP and also to be treated as employees with respect to a trade, business, or partnership for purposes of being covered by the AHP; and (2) DOL complied with the applicable requirements in promulgating the rule.
For more information, click here.