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Healthcare Compliance Updates: Summer 2017



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Healthcare Reform–What’s Next?

Since Congress has not yet been able pass a bill to repeal and replace the Affordable Care Act (ACA), employers must continue to comply with all ACA coverage, notification, and reporting requirements. The hope for relief in some of the more onerous ACA obligations lies with potential new bipartisan legislation that will address the ACA’s financial and administrative burdens or intervention from various regulatory agencies. Sponsors of certain stand-alone bills are expected to reintroduce their proposals in the near future.

To ACA or Not to ACA

The areas of the ACA that potential new legislative measures are expected to address include:

                  • The Cadillac tax

                  • The employer mandate

                  • The definition of a full-time employee

                  • The definition of a seasonal employee

                  • Annual information reporting

Regardless of what changes may be coming, all ACA requirements are still in effect, and that means employers must still comply with them for the time being. 

The Future of Health Savings Accounts

If Congress can’t decide on a replacement for the ACA, they may choose to put forth separate legislation to reform health savings accounts (HSA). This could include increasing contribution limits equal to the out-of-pocket maximums on high deductible health plans, as well as allowing spouses age 55 and up to make catch-up contributions to the same HSA. New measures might include lowering the tax on HSA distributions for nonmedical expenses to 10% as opposed to 20%, allowing HSA funds to be used for over- the-counter medical items, and allowing HSAs to reimburse expenses up to 60 days before the account is established, provided the employee was eligible to open the account during that period. Reform might also allow HSAs to be used to pay health insurance premiums for individual-market plans and to reimburse for medical expenses of nondependent adult children covered under the account holder’s health plan.

Whether you need compliance consulting only or full ACA employee tracking, along with our payroll services, LBMC Employment Partners can help relieve the ACA burden. Contact us today! 

Healthcare Compliance Updates: Summer 2017