While this is not an exhaustive list, these are a few welcome changes expected in 2020.
ACA Cadillac Tax Repeal
The 2019-2020 Spending bill will repeal the Cadillac Tax. The Cadillac Tax was intended as a tax on high cost health plans originally intended to take effect in 2018. It was first delayed until 2020 and then delayed again until 2022. Generous employers can now breathe a little easier, as this provision has been eliminated.
ACA Health Insurer Tax (HIT)
In addition to the Cadillac Tax, the Affordable Care Act’s tax on health insurance companies is also a part of the 2019-2020 spending bill and will be repealed beginning in 2021. The tax was assessed on insurance carriers based on their revenue. The impact to group health plans was typically a 2%-5% increase in premiums on an annual basis. While this news comes too late for 2020 premiums, this news will have a positive impact on premiums in 2021.
ACA Reporting: Delay in Provision of Form 1095
The IRS has again announced that it is extending the deadline for applicable large employers and self-funded plans to distribute annual Forms 1095-C and/or 1095-B to employees and plan participants. While the normal deadline is January 31st, like Forms W-2, the IRS has extended the deadline to March 2nd, 2020. Due to the extended deadline, the IRS will not grant additional 30-day extensions of time.
It is important to note that this does not change the actual filing deadline. Forms 1094-C and 1094-B and the associated copies of Forms 1095-B and 1095-C must still be filed with the IRS on time. The filing deadline for electronic filers is March 31st, 2020, and the deadline for paper filers (those employers issuing less than 250 W-2s is February 28th, 2020.
The Patient-Centered Outcomes Research Institute (PCORI) fee is extended to 2029. The PCORI fee was initially applied from 2012 to 2019. The fee was $1.00 per covered life in the first year that the fee was in effect. Most recently, for plan years that ended on or after October 1, 2018, and before October 1, 2019, the indexed fee was $2.45. The IRS has not released the indexed fee for plan years that end on or after October 1, 2019, and before October 1, 2020, or for subsequent plan years.
Please contact your HORAN representative with additional questions.