Schedule A for health plan

[22su]

I am learning my way though the Form 5500 (trial by fire), so I apologize for what seems to be a simple question that maybe I am overthinking. I am working on a health plan that is self-funded. They allow an outside vendor to come in and offer voluntary supplementary insurance products to their employees, such as cancer, life, etc. The Plan allows payoll deductions for the premiums and remits the premiums when deducted to the vendor. The Plan does not file claims or pay any of the premium or any type of fees. The contract is between the individual employee and the vendor. This vendor has not been reported on previous filings. I assume there are some commissions somewhere, but they are not funded by the Plan.

Is this something that should be included on Schedule A? If it should be reported, how far back should I amend?

Thanks for any help.

[Guest Form5500]

A Schedule A is not required for self-funded plans or ASO contracts, only fully insured plans. If the only benefit that is offered is a self-funded benefit you would file the Form 5500 (first 3 pages) with no Schedule A attachments.

[22su]

Thank you. I am sorry- I should have clarified that the Plan also began offering vision and dental insurance a few years ago through another vendor and has filed Schedule A for these benefits each year, so it is not totally self-funded. That seems pretty easy for me to understand, because the Plan pays a portion of the premium and the broker receives commissions (and they send us Schedule A info each year ).

I am leaning toward filing a Schedule A on the supplementary benefits simply because it would allow me to match up with Schedule H 2e(2), payments to insurance carrier. I tend to err on the conservative side, but I can't decide if I should amend prior years?

[Guest Form5500]

Is this a VEBA? I'm curious because you mention the Schedule H.

[22su]

Is this a VEBA? I'm curious because you mention the Schedule H.

Yes. (I had to look that one up!)

[Guest Form5500]

The only Schedule As that should be attached to the Form 5500 should be the fully insured plans and the Line 2e(2) of the Schedule H will not match the Schedule H premiums paid if there are self-insured plans involved. Not sure if you are doing this for a client or your own firm, but amending prior returns is not necessary for the facts you’ve given and if you’re doing this for a client it’s an unnecessary cost for them. Plus you will be putting them under a burden to gather Schedule A information for a self-insured plan - this isn't easy information to obtain from insurance companies since it is not required.

Nicola

[GMK]

this isn't easy information to obtain from insurance companies since it is not required.

... or in some cases, it's darn difficult even when it is required. (my apologies for ranting)

[22su]

Thank you so much. And no, I am definitely not doing this for clients! I have absolutely no experience with medical insurance. I do handle our retirement plan, including the 5500, but I have found that the two are NOT alike.

GMK, I feel your pain.

[Guest ddarion153]

The only Schedule As that should be attached to the Form 5500 should be the fully insured plans and the Line 2e(2) of the Schedule H will not match the Schedule H premiums paid if there are self-insured plans involved.

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