Get access to the exclusive HR Resources you need to succeed in 2018!
SHRM board member David Windley discusses how unconscious bias can derail workplace diversity efforts.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
Affordable Care Act Kept in Place with All Coverage and Reporting Obligations
Beginning in 2017, the Republican majority in Congress and the Trump administration made repeal and replacement of the Affordable Care Act (ACA) a top priority, and in March 2017 the House GOP leadership introduced the
American Health Care Act (AHCA) as their designated bill to begin to "repeal and replace" the ACA. The House passed their legislation on May 4, 2017.
In July 2017, Senate GOP leaders released the Senate's repeal and replacement bill, named the
Better Care Reconciliation Act (BCRA), but defections by both GOP Senate conservatives and moderates blocked passage. Senate Republicans' then tried to pass a "skinny repeal" bill dubbed the
Health Care Freedom Act—which would have eliminated penalties under the ACA's individual mandate to enroll in ACA-compliant coverage and (through 2024) the employer mandate to provide coverage—but it, too, went down to defeat by a vote of 49 to 51.
A September 2017 effort to pass
the Graham-Cassidy bill, a last-ditch attempt to repeal and replace the ACA that would have ended the individual and employer mandates and given the states greater authority over their health care systems, was not brought up for a Senate vote as Republicans lacked enough support to pass the measure.
These failures left in place the ACA's wide-ranging obligations for employers with 50 or more full-time employees or equivalents to provide ACA-compliant health coverage to employees who work at least 30 hours per week, and to track and report all employee hours to the IRS, along with other administrative requirements.
Going forward, the GOP is likely to seek, with possible bipartisan support, specific targeted reforms. Among these efforts, Sen. Lamar Alexander, R-Tenn., chairman of the Senate Health, Education, Labor and Pensions (HELP) committee, is working to forge health care compromise legislation with Democrats.
Until the ACA's employer coverage and reporting obligations are changed through legislative actions or regulatory adjustments, employers subject to the ACA must comply with all its coverage and administrative requirements.
DOL Proposes Rule to Expand Association Health Plans for Small EmployersA proposed rule by the Department of Labor (DOL) would allow small business to band together and purchase health insurance without some of the regulatory requirements that the Affordable Care Act (ACA) imposes on smaller employees.
Will Medical Marijuana Have a Place in Employee Health Plans?With 29 states and the District of Columbia now allowing the use of medical marijuana, employee health plans may have to consider adding coverage for the drug. In an environment in which opiate addiction continues to escalate, there may be more openness to reimbursing medical marijuana as an alternative, less addictive pain medication.
IRS Extends Deadline to Supply ACA Forms to EmployeesThe IRS extended by 30 days—until March 2, 2018—the due date for distributing health coverage information forms 1095-C or 1095-B to employees. The due dates for filing these forms with the IRS, however, were not extended.
What the Individual Mandate Repeal Means for EmployersThe Tax Cuts and Jobs Act effectively repeals the Affordable Care Act's (ACA's) requirement that most Americans obtain ACA-compliant health coverage, effective in 2019. Here's how it will affect employer-sponsored health plans now, and what it portends for the future of the employer health care mandate and related reporting obligations.
Prepare for ACA Information Reporting in Early 2018The IRS has published final forms and instructions to help employers prepare for reporting on health coverage they offered to their employees in 2017. The forms are to be distributed to employees and filed with the IRS early in 2018 by employers subject to the Affordable Care Act's reporting requirements.
IRS Begins to Send ACA Penalty LettersThe IRS has started to send out penalty notices to employers subject to the Affordable Care Act (ACA) that failed to provide ACA-compliant coverage to full-time employees. Employer that receive a penalty letter will have just 30 days to respond before the IRS demands payment.
Not Every Aspect of Form 1095-C Can Be OutsourcedOutsourcing the processing of Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is common. But employers remain responsible for the accuracy of the form, which is cumbersome to complete, and should be knowledgeable about it when employees have questions.
For 2018, PCORI Fee Is Rising, IRS SaysThe annual fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI), paid by self-insured employers, will go up by about 10 cents per health plan enrollee next year. The annual fees must be paid by July 31 through 2019.
Senate Won't Vote on Last-Ditch ACA Repeal AttemptLike previous Republican-backed bills, the Graham-Cassidy measure would eliminate penalties imposed on employers with 50 or more full-time equivalent employees that don't provide ACA-compliant health care. But unlike previous bills, Graham-Cassidy would allow individual states broad leeway to keep the ACA's key provisions in place, if they chose to do so.
Trump's Executive Orders Seek to Roll Back Health Plan Requirements President Donald Trump's executive order directing federal agencies to issue new rules that will make it easier for businesses to buy health insurance across state lines through association health plans was praised by some for offering new flexibility in health coverage, especially for plans offered in the small group market. But others raised concerns about higher costs for those who remain in individual and small group health plans.
Consider Employees' Reactions Before Reducing Birth Control CoverageMost employer health plans are expected to continue providing no-cost contraception coverage for women, despite the Trump administration's announcement that it will allow employers to claim a religious or moral objection to the Affordable Care Act's contraceptive coverage requirement. Employee relations repercussions and maternity costs are factors to consider.
Play or Pay: Rising Penalties' Role in Complying with the ACAEvery year the Affordable Care Act (ACA) is in effect, some employers must decide whether they will play according to the ACA's rules or pay ACA penalties. Even employers that are trying to comply may slip up and have to pay fees, which are adjusted up each year.
Crossing the Threshold—Small Business to ACA-Bound 'Applicable Large Employer'If your small business has crossed the threshold to applicable large employer (ALE) status by reaching the threshold of 50 full-time equivalent employees, consider your vulnerability to the ACA's nondeductible employer penalties.
The ACA Remains but Targeted Reforms Will Be SoughtAdvocates for easing the ACA's financial and administrative burdens on employers are hopeful that at least a few of the reforms on their wish list, as discussed in this article, will resurface in new legislation.
Out of Sight, Out of Mind? Don't Forget the Possibility of ACA Retaliation ClaimsAs the end of 2017 approaches, employers that failed to comply with the ACA's coverage obligations may soon be receiving employer mandate assessments. While we don't know the exact amount of employer dollars that will be at risk, the Congressional Budget Office estimates that between 2015 and 2024 it will be $139 billion.
HSA Provisions in Failed GOP Bills Could Return in Future Legislation. Should They?The health savings account (HSA) reforms in the now-abandoned Senate and House health care bills may yet be voted on by Congress, if HSA stand-alone legislation is introduced or as part of efforts to stabilize the public health care exchanges.
Don't Overlook 2018 Change in 'Affordability' Safe Harbor PercentageThe IRS recently announced the maximum share of income that employees can be required to pay under the Affordable Care Act's affordability provision, as adjusted annually for inflation. Employers should consider this adjustment in determining how much of their plan premiums they can ask employees to pay next year.
IRS Sets 2018 HSA Contribution LimitsNext year, the amounts that employees can contribute to their health savings account (HSA) will Employers should consider these limits when planning for the 2018 benefit plan year and should review plan communications to ensure that the appropriate limits are reflected
Dealing with Rejected Form 1095-C ReturnsSometimes rejected returns are due to faulty transmission, missing (or multiple) attachments, an error reading the file or duplicate files. Remember, an initial rejection after an IRS computer review is not the same as a notice of a penalty assessment.
Relief Extended for 'Grandmothered' Small Group Health PlansThe Trump administration is allowing small business an extra year to renew certain older plans that don't comply with the ACA and that don't fall under the open-ended exemption for grandfathered plans.
For additional information on implementing the Affordable Care Act, SHRM members can contact the
SHRM Knowledge Center.
SHRM Government Affairs
Health Care Public Policy and Advocacy Updates
Types of Employer Payments Under ACA and How They Are Calculated
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
SHRM Member Discounts Program
SHRM’s HR Vendor Directory contains over 3,200 companies