jjappa

About Jason Jappa

This author has not yet filled in any details.
So far Jason Jappa has created 31 entries.

Legal Alert: Senate Republicans Release Updated Discussion Draft of ACA Repeal Bill

An updated version of the Better Care Reconciliation Act of 2017 was released on July 13th by the U.S. Senate Committee.

Senate Majority Leader Mitch McConnell of Kentucky released a healthcare “Discussion Draft” of legislation, called the Better Care Reconciliation Act of 2017 (BCRA) on Thursday, June 22, 2017, which is the Senate version of the Affordable Care Act (ACA) “repeal-and-replace” legislation American Health Care Act (AHCA) passed by the U.S. House of Representatives last month.  An updated “Discussion Draft” of the BCRA was released on June 26, 2017 with the intention of calling for a vote on the bill before the Fourth of July recess. […]

By |July 17th, 2017|Employee Benefits, Employee Benefits Adviser, Health Care Reform|Comments Off on Legal Alert: Senate Republicans Release Updated Discussion Draft of ACA Repeal Bill

Legal Alert: Senate Republicans Release Healthcare Bill; Largely Mirroring House Bill but with Some Key Differences

On Thursday, June 22, 2017, Senate Majority Leader Mitch McConnell of Kentucky released a 142-page healthcare “Discussion Draft” of legislation, called the Better Care Reconciliation Act of 2017 (BCRA), which is the Senate version of the Affordable Care Act (ACA) “repeal-and-replace” legislation American Health Care Act (AHCA) passed by the U.S. House of Representatives last month.  An updated “Discussion Draft” of the BRCA was released on June 26, 2017.  A summary of the updated June 26 draft of the BCRA by the U.S. Senate Committee on the Budget is available here and a section-by-section summary of the June 26th version is available here.

The major substantive change in the updated Discussion Draft released on June 26 was to add a new Section 206, beginning in 2019, that would subject an individual who has a break in continuous “creditable coverage” for 63 days or more in the prior year to a six-month waiting period (in the individual market) before coverage begins.  This provision is intended to provide an incentive for young and healthier individuals to maintain health insurance since the bill would eliminate the individual mandate.  The AHCA proposed imposing a 30% surcharge on those without continuous creditable coverage, but there were concerns over whether that provision could pass Senate parliamentary rules.

The unveiling of the Senate bill comes after weeks of drafting by a small group of Senate Republican leadership behind closed doors that has frustrated Democrats and left out many Republicans from the drafting process.  The Congressional Budget Office released its score of the legislation on June 26, 2017, finding that the updated Discussion Draft of the BCRA would leave 22 million more uninsured by 2026 than under the ACA (versus 23 […]

By |June 28th, 2017|Employee Benefits, Health Care Reform, Human Resources, Medical|Comments Off on Legal Alert: Senate Republicans Release Healthcare Bill; Largely Mirroring House Bill but with Some Key Differences

Legal Alert: REMINDER: PCORI Fees Due by July 31, 2017

Employers that sponsor self-insured group health plans, including health reimbursement arrangements (HRAs) should keep in mind the upcoming July 31, 2017 deadline for paying fees that fund the Patient-Centered Outcomes Research Institute (PCORI).  As background, the PCORI was established as part of the Affordable Care Act (ACA) to conduct research to evaluate the effectiveness of medical treatments, procedures and strategies that treat, manage, diagnose or prevent illness or injury.  Under the ACA, most employer sponsors and insurers will be required to pay PCORI fees until 2019.

The amount of PCORI fees due by employer sponsors and insurers is based upon the number of covered lives under each “applicable self-insured health plan” and “specified health insurance policy” (as defined by regulations) and the plan or policy year end date.

  • For plan years that ended between January 1, 2016 and September 30, 2016, the fee is $2.17 per covered life and is due by July 31, 2017.
  • For plan years that ended between October 1, 2016 and December 31, 2016, the fee is $2.26 per covered life and is due by July 31, 2017.

For example, a plan year that ran from October 1, 2015 through September 30, 2016 will pay a fee of $2.17 per covered life.  Calendar year 2016 plans will pay a fee of $2.26 per covered life.

NOTE: The insurance carrier is responsible for paying the PCORI fee on behalf of a fully insured plan.  The employer is responsible for paying the fee on behalf of a self-insured plan, including an HRA.  In general, health FSAs are not subject to the PCORI fee.

Employers that sponsor self-insured group health plans must report and pay PCORI fees using IRS Form 720, Quarterly Federal Excise Tax Return.

Note […]

By |May 31st, 2017|Compliance, Employee Benefits, Employee Benefits Adviser, Employee Communications, Health Care Reform|Comments Off on Legal Alert: REMINDER: PCORI Fees Due by July 31, 2017

Legal Alert: House Republicans Pass American Health Care Act; Bill Heads to Senate for Further Consideration

On Thursday, May 4, by a vote of 217 to 213 (with 20 Republicans voting against the bill), the U.S. House of Representatives passed an amended version of the American Health Care Act (AHCA), which repeals and replaces significant portions of the Affordable Care Act (ACA).

This bill comes several weeks after U.S. House of Representatives’ Speaker Paul Ryan pulled the AHCA […]

By |May 9th, 2017|Compliance, Employee Benefits, Employee Benefits Adviser, Employee Communications, Health Care Reform|Comments Off on Legal Alert: House Republicans Pass American Health Care Act; Bill Heads to Senate for Further Consideration

Legal Alert: HHS Issues Final Rule on Market Stabilization

On April 13, 2017, the Department of Health and Human Services (HHS) released its final market stabilization rule, the first regulatory act of the Trump administration. The final version is largely unchanged from the proposed rule released on February 10, 2017. Unless otherwise specified, the rule is effective 60 days after publication and will apply to plan years beginning on […]

By |April 21st, 2017|Compliance, Health Care Reform, Human Resources|Comments Off on Legal Alert: HHS Issues Final Rule on Market Stabilization

Legal Alert: House Republicans Withdraw the AHCA

On Friday, March 24, 2017, the U.S. House of Representatives’ Speaker Paul Ryan pulled from the floor the American Health Care Act (AHCA), the proposed legislation to repeal and replace the Affordable Care Act (ACA), once it was clear that the bill was short on votes to pass. Effectively, this means the AHCA will not survive to become law and, at this time, any future efforts to repeal and replace the ACA are uncertain. This may mean, as Speaker Ryan said shortly after the announcement that the bill was […]

By |March 30th, 2017|Employee Benefits, Health Care Reform, Human Resources, Long-Term Care, Medical|Comments Off on Legal Alert: House Republicans Withdraw the AHCA

Legal Alert: House Committees Release Proposed Legislation to Repeal and Replace the ACA

On Monday, March 6, the U.S. House of Representatives Ways and Means and Energy and Commerce Committees released the American Health Care Act (AHCA), their proposed legislation to repeal and replace the Affordable Care Act (ACA) through the budget reconciliation process, which requires a simple majority vote of Congress […]

By |March 9th, 2017|Employee Benefits, Health Care Reform, Human Resources, Legislation|Comments Off on Legal Alert: House Committees Release Proposed Legislation to Repeal and Replace the ACA

Legal Alert: White House Extends Transition Relief for Non-Compliant Plans through 2018

On February 23, 2017, the White House announced a one-year extension to the transition policy (originally announced November 14, 2013 and extended several times since) for individual and small group health plans that allows issuers to continue policies that do not meet ACA standards. […]

By |February 24th, 2017|Compliance, Employee Benefits Adviser, Health Care Reform|Comments Off on Legal Alert: White House Extends Transition Relief for Non-Compliant Plans through 2018

Legal Alert: IRS to Continue Accepting Tax Returns without Indication of Health Insurance

The IRS has announced that it will continue to process tax filings of individuals whose returns do not indicate whether they have maintained health insurance as required under the Affordable Care Act (ACA).  The announcement is in direct response to the President’s January executive […]

By |February 21st, 2017|Compliance, Employee Benefits, Employee Benefits Adviser, Legislation, Medical|Comments Off on Legal Alert: IRS to Continue Accepting Tax Returns without Indication of Health Insurance

Legal Alert: President Trump Issues Executive Order on the Affordable Care Act

President Trump moved swiftly after taking office on Friday, issuing an Executive Order intended to minimize the economic and regulatory burdens of the Affordable Care Act (“ACA”).  The order is somewhat symbolic and has no immediate effect on employers, many of whom are in the process of complying with the ACA’s onerous reporting requirements (Forms 1094 and 1095), which are […]

By |January 24th, 2017|Employee Benefits, Health Care Reform, Medical|Comments Off on Legal Alert: President Trump Issues Executive Order on the Affordable Care Act