Health & Welfare Plans Newsletter

BULLETIN
Supplement to
February 18, 2015

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[Official Guidance]

Text of IRS Notice 2015-17: Health Coverage Reimbursement Arrangements of Smaller Employers Get Relief from Sec. 4080D Excise Tax Through June 30, 2015 (PDF)
"This notice reiterates the conclusion in previous guidance addressing employer payment plans, including Notice 2013-54 ... that employer payment plans are group health plans that will fail to comply with the market reforms that apply to group health plans under the [ACA] ... This notice also provides transition relief from the assessment of excise tax under Internal Revenue Code Section 4980D for failure to satisfy market reforms in certain circumstances. The transition relief applies to employer healthcare arrangements that constitute [1] employer payment plans, as described in Notice 2013-54, if the plan is sponsored by an employer that is not an Applicable Large Employer (ALE) under Code Section 4980H(c)(2) ... [2] S corporation healthcare arrangements for 2-percent shareholder-employees; [3] Medicare premium reimbursement arrangements; and [4] TRICARE-related health reimbursement arrangements (HRAs). This notice also provides additional guidance on the tax treatment of employer payment plans.... [T]he excise tax under Code Section 4980D will not be asserted for any failure to satisfy the market reforms by employer payment plans that pay, or reimburse employees for individual health policy premiums or Medicare part B or Part D premiums [1] for 2014 for employers that are not ALEs for 2014, and [2] for January 1 through June 30, 2015 for employers that are not ALEs for 2015. After June 30, 2015, such employers may be liable for the Code section 4980D excise tax." (Internal Revenue Service [IRS])  

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