2017 Health Care Compliance Highlights

Certain changes to some ACA requirements take effect in 2017 for employers sponsoring group health plans, such as increased dollar limits. To prepare for 2017, employers should review upcoming requirements and develop a compliance strategy.

Here are some of the requirements effective in 2017. Note this list is not exhaustive and may not be applicable to you. Please contact your Lovitt & Touché representative with any questions regarding your health care compliance.

  • Cost-sharing Limits: For the 2017 plan year, the annual limit on total enrollee cost-sharing for essential health benefits (EHB) is $7,150 for self-only coverage and $14,300 for family coverage.
  • Health Flexible Spending Account (FSA) Contributions: The ACA limits an employee’s pre-tax salary reduction contributions to a health FSA each year. The limit is increased to $2,600 for 2017.
  • Summary of Benefits and Coverage (SBC): A new SBC template and related materials were released for use beginning on or after April 1, 2017.
  • Reinsurance Fees: Health insurance issuers and self-funded group health plans that provide major medical coverage must pay fees to a reinsurance program for 2014–2016. Fully insured plan sponsors do not have to pay the fee directly. Reinsurance fees do not apply for 2017 and beyond, although the 2016 reinsurance fees will be paid in 2017.
  • Health Plan Affordability: An applicable large employer’s (ALE) health coverage is considered affordable if the employee’s required contribution for the lowest-cost self-only coverage that provides minimum value does not exceed 9.5 percent of the employee’s household income for the taxable year (adjusted to 9.69 percent for plan years beginning in 2017).
  • Section 6055 and 6056: For the 2016 calendar year, reporting deadlines under Section 6055 and/or Section 6056 are as follows:
    • Information returns must be filed with the IRS by Feb. 28, 2017 (or March 31, 2017, if filed electronically); and
    • Written statements must be furnished to individuals by March 2, 2017. This reflects a 30-day extension of the furnishing deadline provided in Notice 2016-70.

Please contact your Lovitt & Touché representative for more information on this or any other compliance-related topic.

The information contained in this newsletter is not intended as legal or medical advice. Please consult a professional for more information.

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