2019 Comparative Effectiveness Research Fee (PCORI Fees)

Posted on Jun 19, 2019 in Health Care Reform

Information about the Comparative Effectiveness Research Fee in 2019

The Affordable Care Act imposes an annual fee called the Comparative Effectiveness Research Fee (CERF) on insurers and plan sponsors of self-insured coverage to help fund the Patient-Centered Outcomes Research Institute (PCORI). This post includes a brief review of CERF.

CERF Payment Details
The fee is based on the average covered lives for the applicable 12-month policy or plan year. It is paid using IRS Form 720 by July 31 each year for the plan year that ended in the preceding calendar year. As a reminder, employers must use their ERISA plan year if it is different from the renewal date. The fees for 2019 are:

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Final Rule Issued Allowing HRAs to be Used for Individual Coverage

Posted on Jun 17, 2019 in Health Care Reform

Final Rule Issued Allowing HRAs to be Used for Individual Coverage
June 17, 2019

On June 13, the U.S. Departments of the Treasury, Labor, and Health and Human Services (tri-agencies) issued a final rule allowing employees to use the dollars in employer-funded Health Reimbursement Arrangements (HRAs, also called Health Reimbursement Accounts) to purchase individual coverage both on and off the public Marketplace (or Exchange). The rule also creates a new excepted benefit HRA (EBHRA) to enable employees to be reimbursed for excepted benefit costs. This finalizes a proposed rule issued in Oct. 2018 largely as proposed, but with some modifications. The rule follows through on an Executive Order that directed the tri-agencies to consider ways to expand the flexibility of HRAs. 

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IRS Extends Deadline for Supplying ACA Forms to Employees

Posted on Jan 26, 2018 in Health Care Reform

The IRS issued Notice 2018-06 on Dec. 22, 2017, which extended by 30 days the 2018 due date for distributing 2017 health coverage information forms 1095-C or 1095-B to employees, regarding the health care coverage offered to them.

The new deadline for supplying these forms to employees is March 2, 2018. This 30-day extension is automatic. Employers and providers don’t have to request it.

The due dates for filing 2017 information returns with the IRS were not extended, however. For 2018, the due dates to file information returns with the IRS remain Feb. 28 for paper filers or April 2 for electronic filers.

Notice 2018-6 also extended good-faith transition relief to 2017 information reporting. This relief applies only to incorrect and incomplete information reported on Form 1095-C or 1095-B, and not to a failure to timely furnish or file the forms.

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Information on 1095 Reporting for Plan year 2017

Posted on Jan 26, 2018 in Health Care Reform

During the first week of October 2017, the Internal Revenue Service published final forms and instructions to help employers prepare for reporting on health coverage they offered to their employees in 2017 year. The forms must be distributed to employees and filed with the IRS early in 2018 by employers subject to the Affordable Care Act’s (ACA’s) reporting requirements.

Below are links to the final forms and instructions on the IRS website:

The IRS had released draft versions of these forms and instructions in September.

The instructions to the Forms 1094-C and 1095-C were released with a few changes:

  • Form 1094-C: A box in Line 22 called “Section 4980H Transition Relief” has been removed. It is not applicable in 2017.
  • Forms 1095-B and 1095-C: A paragraph called “Additional information” in the instructions for recipients directs individuals to an IRS webpage providing information on the individual and employer shared-responsibility provisions and premium tax credits.
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How Much Life Insurance Does a Stay at Home Spouse need?

Posted on Jul 25, 2017 in Success ideas

When deciding how much life insurance a person needs, Financial Planners recommend an amount of 7 to 10 times your annual income.

But what if you don’t have any annual income? What if you are a full-time, stay at home spouse and parent? Do you need a life insurance policy if you have no income?

Well, in a way, yes. In fact, as a stay at home spouse or parent, you make hugely valuable contributions to the household. Contributions that could cost thousands should something happen to you.

According to a recent Salary.com survey in 2016, the value of a stay at home parent would be about $143,000 if you had to outsource those jobs. These services include those provided by a typical homemaker which include a housekeeper, child care, a driver for the kids, and more.

But how much does this stay at home spouse or parent need for life insurance? $1,000,000? Probably not. Use the following as a guide.

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