News & Events

| Agencies Finalize Preventive Care Rules, Accommodation for Closely Held For-Profit Entities

August 18, 2015

The Internal Revenue Service, U.S. Department of Labor, and Health and Human Services (the “Agencies”) have released final regulations on several aspects of the Affordable Care Act’s (ACA’s) preventive care requirements. The regulations finalize prior guidance on coverage of preventive services and define standards regarding a “closely held” for-profit entity’s decision not to provide coverage for contraceptive services. The final regulations are effective for plan years beginning on or after September 14, 2015.

| IRS Releases Draft 2015 Instructions for ACA Reporting Forms

On August 6, 2015 The IRS released updated draft 2015 instructions for the B-Series and C-Series reporting forms (1094-B, 1095-B, 1094-C and 1095-C) that will be used by employers and coverage providers to report certain information to full-time employees and the Internal Revenue Service (IRS).

| IRS Releases Second Notice on Cadillac Tax Implementation Issues

SIG Alert

August 7, 2015

On July 31, 2015, the Internal Revenue Service (“IRS”) released Notice 2015-52 (the “Notice”), the second installment in the IRS’s process of developing regulatory guidance regarding the ACA’s “excise tax on high cost employer-sponsored health coverage” – commonly known as the “Cadillac tax.” The Cadillac tax applies starting in 2018, and imposes a 40% nondeductible excise tax on the aggregate cost of “applicable employer-sponsored coverage” in excess of certain statutory limits ($10,200 for self-only coverage and $27,500 for coverage other than self-only).

| New Trade Act Quietly Increases ACA Reporting Penalties

SIG Alert

July 13, 2015

The Monday before the fourth of July, President Obama signed into law the Trade Preferences Extension Act of 2015, which contained several tax provisions in addition to the trade measures that were the focus of the bill. Among the tax provisions were changes that increase the penalties associated with failure to file or furnish correct “information returns and payee statements,” which include standard information returns, such as Forms W-2 and 1099, as well as the new reporting forms required by the Affordable Care Act (ACA). This table summarizes the responsible parties and forms applicable to the ACA’s reporting requirements.

| U.S. Supreme Court Finds a Constitutional Right to Same - Sex Marriage

SIG Alert

June 29, 2015

In a 5-4 holding released Friday, June 26, the United States Supreme Court found in Obergefell v. Hodges that state prohibitions on same-sex marriage violate the Equal Protection and Due Process clauses of the Fourteenth Amendment to the U.S. Constitution. In short, this means that every state must allow same-sex couples to marry and must recognize same-sex marriages performed in other states. The decision invalidates any existing state bans on same-sex marriage.

| Waiting on the Supremes

SIG Alert

June 28, 2015

Next week the Supreme Court of the United States of America (SCOTUS) will be communicating their decision regarding King v. Burwell. This decision may have an impact on the Affordable Care Act (ACA) and we anticipate that you will want to understand how this decision may impact you. What adjustments or changes will we all need to make – if any?

Stay tuned for next week as SIG U brings you the latest once we know the decision and will review what it means to YOU.

Waiting on the Supremes
The clock is rapidly ticking down as we wait for the Supreme Court to release its decision on King v. Burwell. We are back to our habit of checking daily as the Supreme Court releases all of its decisions for the year before June 30. The court typically releases its “biggest” decisions last and they often release decisions on the third Monday of the month and then on Tuesday, Wednesday and Thursday mornings, but at the end of its term it’s basically anyone’s guess which morning in the next two weeks that we will get the decision… Read More

| King v. Burwell Decision

SIG Alert

June 26, 2015

In a 6-3 holding released yesterday the United States Supreme Court upheld the availability of subsidies in exchanges maintained by the Federal Government. Six members of the Court-Chief Justice Roberts, Justices Kennedy, Ginsburg, Breyer, Sotomayor and Kagan) agreed with the Obama Administration and voted to validate the Internal Revenue Service’s interpretation of the Affordable Care Act (“ACA”) that permits premium tax credits in both state- and federally-operated exchanges. This means two things: (i) some 7.5 million Americans will not lose their subsidies that help them to pay for health insurance and (ii) it is back to “business as normal” for the ACA-meaning all employers must continue to attend to their compliance efforts.

| ERISA Electronic Delivery-A Friendly Reminder

SIG Alert

June 10, 2015

Many employers are devoting most (if not all) of their compliance time focused on the requirements of the Affordable Care Act (ACA). Employers and other plan sponsors should, of course, work diligently to ensure that they are meeting (or getting ready to meet) the complex ACA requirements, but they should be ever diligent and mindful of all of the rules generally applicable under the Employee Retirement Income Security Act of 1974 (ERISA).

A case in the U.S. District Court for the Eastern District of New York – Raymond Thomas v. CIGNA Group Insurance, et al. (No 09-CV-5029)-provides an instructive reminder that those who rely on electronic delivery of plan-related documents must follow fairly specific rules.

| Departments Clarify Out - of - Pocket Limit Rules for 2016

SIG Alert
 May 26, 2015
The Departments of Health and Human Services, Labor, and Treasury, jointly released the twenty seventh set of FAQs on Affordable Care Act implementation issues. The FAQs clarify the application of the ACA’s out-of-pocket limit rules for plan years beginning in 2016.



| IRS Releases Final Forms and Instructions for Affordable Care Act Reporting

SIG Alert

In February 2015, the IRS released final forms and instructions related to information reporting under the Affordable Care Act (the “ACA”). These forms include Form 1095-B, Health Coverage, Form 1094-B, Transmittal of Health Coverage Information Returns, Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage.