Implementing the new health plan laws

Implementing the new health plan laws. This two-part article covers significant developments in late 2011 and 1 2012 in employee benefits, including employment taxes, executive  compensation, health and welfare benefits, and qualified plans. Part I, published in the November 2012 issue, dealt with qualified retirement  plan benefits and executive compensation. This month, Part II focuses on guidance released and changes to the rules for group health plans as a  result of the Patient Protection and Affordable Care Act PPACA. 1    [ILLUSTRATION OMITTED]     Supreme Court Upholds PPACA's Individual Mandate     The U.S. Supreme Court on June 28, 2012, issued its  much-anticipated decision in the consolidated PPACA cases. 2 The Court held PPACA's individual mandate in Sec. 5000A is a valid exercise  of Congress's authority to "lay and collect taxes." The Supreme Court also upheld PPACA's expanded Medicaid eligibility  provisions but held the federal government could not withhold with·hold    v. with·held, with·hold·ing, with·holds   v.tr. 1. To keep in check; restrain. 2. To refrain from giving, granting, or permitting. See Synonyms at keep. 3. all  federal Medicaid funds Noun 1. Medicaid funds - public funds used to pay for Medicaid cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money  from states that do not comply with the new  requirements. Form W-2 Reporting on Group Health Plan Coverage    Notice 2012-9 3 supersedes Notice 2011-28 4 regarding reporting  on Form W-2, Wage and Tax Statement, of the cost of employer-provided  group health plan coverage. This new requirement generally applies beginning with 2012 Forms W-2, which generally are required to be filed  in January 2013 and was optional for 2011 Forms W-2. The core requirements remain the same, with certain notable clarifications and  modifications:     Small employer relief: Notice 2012-9 clarifies that the exemption  for employers that were required to file fewer than 250 Forms W-2 for  2011 is determined without regard to the use of an agent under Sec. 3504.    Related employers: If an employee is concurrently employed by  related employers and one of the employers serves as a common paymaster,  the common paymaster is required to include the aggregate reportable  cost of coverage that is provided to the employee by all the employers  for whom it serves as common paymaster. Notice 2012-9 clarifies that, if the related employers do not compensate through a common paymaster, they  may either report the entire aggregate reportable cost on one Form W-2  or allocate the cost among the concurrent employers, using any  reasonable method. Dental and vision plans: Under the prior guidance, dental or vision coverage was excludable from reporting if it was not integrated into a  group health plan providing other health care coverage. Under Notice 2012-9, this coverage is excludable if it is offered under a separate  policy, certificate, or contract of insurance--or the participants must  have the right to decline the benefits and if they elect coverage, are  required to pay an additional premium. 5    Cost of coverage includible in income: Notice 2012-9 clarifies that  the cost of coverage that is includible in the income of a highly  compensated individual under Sec. 10.5h and the payments or  reimbursements of health insurance premiums that are includible in the  income of a 2% shareholder-employee of an S corporation are not included  in the aggregate reportable cost. Calculating reportable cost: Notice 2012-9 clarifies that, if an employer is using a composite rate to determine the aggregate reportable  cost for active employees but not for determining the applicable COBRA cobra, name for African and Asian snakes of the family Elapidae that are equipped with inflatable neck hoods. The family also includes the African mambas, the Asian kraits, the New World coral snakes and a large number of Australian snakes. Consolidated Omnibus Budget Reconciliation Act Consolidated Omnibus Budget Reconciliation Act, n.pr law that allows individuals to carry over health coverage from a previous job for a limited time at their own expense. premium, it may use either the composite rate or the applicable COBRA premium to determine  the aggregate reportable cost of coverage--as long as the same method is  used consistently for all active employees and is used consistently for  all qualifying beneficiaries receiving COBRA coverage. Employee-assistance programs: Notice 2012-9 clarifies that coverage under an employee-assistance program, wellness program, or on-site  medical clinic is subject to the reporting requirements only if it is  provided under a group health plan under Sec. 5000b1. If so, the coverage is required to be included in the aggregate reportable cost of  coverage only if the employer charges a premium for COBRA or other  federal continuation coverage. Employers that do not cha Find out more on  payday lenders