Health Care Reform BenAlerts
August 1, 2011 - PPACA: Women's Preventive Care Services (PDF Version ) April 22, 2011 - Important Legislative Update Related to the Patient Protection and Affordable Care Act (PDF Version ) April 7, 2011 - California Legislation Provides Tax Relief (PDF Version ) December 13, 2010 - Health Care Reform: California Taxation and Related Issues November 3, 2010 - Communicating Health Care Reform to Employees October 26, 2010 - W-2 Reporting Relief for 2011 and No OTC Drugs for FSA's and HSA's Health Care Reform - October 4th, 2010 August 16, 2010 - Health Care Reform Update July 20, 2010 – Health Care Reform: 9/23/10 The First Mile Marker July 6, 2010 – New Interim Rules June 21, 2010 – Rules Defining Grandfathered Employee Benefit Plans May 19, 2010 – Health Care Reform's Expansion of Coverage to Over-Age Dependents May 13, 2010 – Kaiser Permanente to Cover Dependents up to Age 26 Beginning June 1st April 19, 2010 – Sample memo on Health Care Reform for Employees April 16, 2010 – Health Care Reform: An Employer’s Timeline April 14, 2010 – Small Business Health Care Tax Credit April 1, 2010 – Jumping into Health Care Reform March 25, 2010 – Health Care Reform Implementation

Health Care Reform
BenAlerts

BenAlert - April 22nd, 2011

Important Legislative Update Related to the Patient Protection and Affordable Care Act

The following is a legislative update on recent actions taken by California Governor Brown, the U.S. Congress and the IRS which are related to the Patient Protection and Affordable Care Act. Although signed into law on March 23, 2010 by President Obama, fine tuning of the health care reform law continues as the state and federal governments conform, clarify and in some cases repeal certain provisions.

We will continue to keep you apprised of the latest developments.

California AB 36

As you know from our previous Memorandum (2011-3), the California legislature passed a law which will conform the tax treatment for medical benefits available under PPACA (adult dependent provisions) to federal law. We now can confirm that Governor Brown signed the legislation into law and it has been chaptered on April 7, 2011.
Full Text of AB 36

Refer to Howitt's recent BenAlert, California Legislation Provides Tax Relief for our Action Plan.

H.R. 4: 1099 Requirements

The U.S. Congress has now passed H.R. 4 and it awaits President Obama's signature. H.R. 4 repeals the expansion of information reporting (1099s) resulting from PPACA rules originally promulgated on March 23, 2010. They were to take effect for tax years beginning after December 31, 2010. H.R. 4 also repeals an income recapture provision applicable to certain taxpayers who receive government subsidies for health care expenditures. This PPACA provision was to take effect for tax years after December 31, 2013.
Full Text of H.R. 4

IRS Notice 2011-28: Interim Guidance on W-2 Reporting

PPACA requires employers to include the aggregate cost of employer-sponsored group health coverage beginning with the 2012 tax year (W-2s furnished in January 2013). This Notice contains details on what constitutes "applicable employer-sponsored coverage," the methods available for calculating the amounts to be reported, and guidance in special situations such as change of coverage, blended or composite rates, and non-calendar determination periods.

It is important to note that employers with fewer than 250 W-2s for the 2011 tax year will have optional reporting requirement for the 2012 tax year.

We will prepare a more detailed analysis of this Notice within the next week.
Full Text of IRS Notice 2011-28

Howitt Benefit Services (HBS) is not an attorney firm and HBS is not giving legal advice or interpreting the law. This update is published as an information source for our clients and colleagues. It is general in nature and not a substitute for legal advice or an opinion on a particular case.

If you have questions, please contact us at bmisshteftn.ceotwii@no or at 1-866-445-1550.