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December 2021

We’re here to help you stay on top of the impact of health reform, including the Affordable Care Act (ACA) and state individual mandate reporting. With Health Reform Today, we'll keep you up to date on the latest news. Here are some topics we are following.

The Build Back Better Act is currently being debated in the Senate. If the bill passes, it is important to understand the impact to the Affordable Care Act (ACA) and your business. The Act will lower the affordability threshold, which may require employers to pay more for employee health coverage to avoid penalties. Learn more about the bill and how to calculate affordability.

It’s the ACA reporting season, and HR teams need to be aware of an important change that could significantly increase their risk of incurring penalty assessments. The IRS indicated months ago that it intends to sunset “good faith relief,” a grace period that exempted eligible employers from penalties for certain missing or inaccurate information.

Because it’s easy to make mistakes when entering data on ACA reporting forms, the best way to help limit the risk of penalties is to doublecheck for errors in coding combinations.

ACA reporting requirements can seem overwhelming. We help make it easier. Get your simplified guide to Form 1094 and 1095 reporting, including a quick reference guide to 1095 codes and form completion, reporting requirements for non-employees, and more. 

The recent Notice 2020-76 from the IRS extends the deadline to supply Form 1095 to employees. For Health e(fx) clients, reporting dates remains unchanged despite IRS changes. Before you begin your reporting season, make sure you have read the three tips that will help keep you on track for a penalty free reporting season. 

The Internal Revenue Service (IRS) issued Revenue Procedure 2021-36 on August 30, 2021 decreasing the affordability percentage index from 9.83% in 2021 to 9.61% for plan years beginning in calendar year 2022. Coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed 9.61% percent of the employee’s household income.

This percentage is important when setting employer contributions for self-only coverage for plans beginning on or after January 1, 2022. Health e(fx) clients can use the affordability tests when making contribution and plan decisions.

It's never too early to familiarize yourself with the penalties and parameters for 2022 reporting season. Read more to set a timeline for 2022 and learn about the imminent risk of receiving a letter 226-J.

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