More healthcare-related regulatory news for plan sponsors, including links to detailed information.
Proposed rule on health insurance premium tax credit
The Internal Revenue Service (IRS) released proposed regulations relating to the health insurance premium tax credit and the individual shared responsibility provision. These proposed regulations affect individuals who enroll in qualified health plans through health insurance exchanges and claim the premium tax credit, and exchanges that make qualified health plans available to individuals and employers.
The proposed regulations also affect individuals who are eligible for employer-sponsored health coverage and individuals who seek to claim an exemption from the individual shared responsibility provision because of unaffordable coverage. Although employers are not directly affected by rules governing the premium tax credit, these proposed regulations may indirectly affect employers through the employer shared responsibility provisions and the related information reporting provisions.
To read the entire proposed rule, click here.
House approves bill on health flexible spending, health savings accounts
The U.S. House of Representatives voted 243-164 to approve the Restoring Access to Medication and Improving Health Savings Act (H.R.1270). The bill would repeal the tax code’s provisions that limit payments for medications from health savings accounts, medical savings accounts, and health flexible spending arrangements to only prescription drugs or insulin, thereby allowing distributions from such accounts for over-the-counter drugs.
The repeal would apply to drug expenses incurred after December 31, 2015. The bill would also reduce the threshold at which individuals must fully repay any excess cost-sharing subsidies they received to help them purchase health insurance on an exchange. The Joint Committee on Taxation estimated that the bill would raise $2.17 billion over 10 years and increase the number of uninsured by 130,000.
CMS: When must 2017 edition of SBC template be used?
The Centers for Medicare and Medicaid Services (CMS) released guidance recently addressing the applicability date of the Summary of Benefits and Coverage (SBC) template and associated documents that were published on April 6, 2016.
For more information, click here.