Last week, the IRS released updated FAQs regarding reporting of employer provided health coverage on Form W-2.  The updated FAQs incorporate guidance set forth in Notice 2012-9.  Generally, employers filing more than 250 Forms W-2 must report the value of employer provided health coverage starting in calendar year 2012 (on Forms W-2 furnished to employees in 2013). 

Find the FAQs here: http://www.irs.gov/newsroom/article/0,,id=237894,00.html

The FAQs include a link to a helpful chart that breaks down which types of coverage employers need to report on Form W-2. 

Find the chart here: http://www.irs.gov/newsroom/article/0,,id=254321,00.html

The House of Representatives and the Senate have passed a bill to extend the payroll tax cut.  President Obama plans to sign the bill into law immediately.

The payroll tax cut reduces how much workers pay into Social Security on their first $110,100 in wages, from 6.2% to 4.2%.  Originally set to expire in February, the bill will extend the payroll tax cut until the end of 2012. 

The IRS lowered the Medical Mileage rate from 23.5 cents per mile to 23 cents per mile, effective January 1, 2012 to December 31, 2012. 

Participants can use their BESTflex Plan – Health Care FSA to be reimbursed for mileage costs associated with traveling to and from doctor’s visits, dental appointments, eye exams and to pick up prescription medications as long as the primary purpose of travel is for and essential to obtaining medical care. 

It’s been a busy week!

The Departments of Labor and Health and Human Services, along with Treasury/IRS, released a final rule on the health care reform requirement that group health plans provide a summary of benefits and coverage (SBC) to consumers. 

Originally slated for March 23, 2012, the final rule requires plans with plan years that start September 23, 2012 or later to supply SBCs in their next open enrollment.  Other changes from the proposed rule include:

·        allowing the SBC to be incorporated into the Summary Plan Description (SPD) if the SBC information is intact and prominently displayed at the beginning of the SPD;

·        permitting reasonable attempts to comply with the 4 page, double-sided, page limit;

·        reducing the number of coverage examples from three to two (normal delivery childbirth and Type 2 diabetes);

·        recognizing that if a plan’s terms cannot be reasonable described using the template, the plan or insurer’s best efforts...

Recently, the Department of Health and Human Services (HHS) issued a statement indicating that nonprofit employers who, based on religious beliefs, do not currently provide first dollar contraceptive coverage in their health insurance plan, have until August 1, 2013 to comply with the rule.  Some expected that such employers would be completely exempt from the rule because churches and other houses of worship are exempt.  Since the statement was released, all sides have weighed in and tensions surrounding the issue are escalating. 

In August of 2011, HHS issued an interim final rule, stemming from Health Care Reform, requiring most health insurance plans to cover preventative services for women, including FDA-approved contraceptives like the birth control pill and morning-after pill, without charging a co-pay, co-insurance or a deductible, effective August 1, 2012.  In order to be exempt from the rule concerning contraceptives, an organization must serve primarily persons who share its religious tenets. ...