Over the last couple of years, COVID created some temporary and potentially permanent changes to employer reporting requirements.
As COVID moves from pandemic to endemic, let’s review the status of reporting requirements for 2022.
PCORI Fee Change
For plan years that end on or after October 1, 2021, and before October 1, 2022, the new PCORI fee is $2.79 per covered life. The resulting payments are due on or before July 31, 2022.
ACA Safe Harbor Reporting Requirement Updates
The IRS has decreased the affordability percentage index for eligible employees’ affordable health care options from 9.81% to 9.61% for 2022.
As reported in BenefitsPRO, “For employers who use the Federal Poverty Level (FPL) Safe Harbor method, coverage is deemed affordable if the employee’s required monthly contribution for the lowest-cost, self-only, ACA-compliant coverage does not exceed the FPL for a single individual. Eligible employees must not be required to pay more than $103.15 per month for plans beginning July 11, 2021, to December 31, 2022.”
Good Faith ACA Reporting Error Change
Good faith relief from ACA Reporting errors has ended. As such, forms 1094-B or C and 1095-C should be carefully reviewed each year before submission to the IRS. Employers now have until March 2 to submit these forms, and the annual deadline is permanently moving to that date.
In addition, employer penalties have increased to $280 per employee for failure to provide form 1095-B or C to employees, plus $280 per employee for failure to file, for potential employer penalties of up to $560 per employee.
Health Care and Pharmacy Spending Updates
As required under the Consolidated Appropriations Act (CAA), all employer groups who offer health plans, along with insurers and pharmacy benefit managers, must submit information on pharmacy and health care spending to the Departments of Health and Human Services (HHS), Labor (DOL) and Treasury. HHS will use the information to compile an annual report beginning in 2023 on the impact these costs have on premiums and consumer out-of-pocket costs. The deadline for submission to HHS is initially December 27, 2022, and then by June 1st each year after that.
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