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HHS Office for Civil Rights Releases Protocol for HITECH-Mandated HIPAA Audits

"On June 26, 2012, OCR released the protocol that will be used to perform the audits required by HITECH. The protocol addresses seven aspects of the Privacy Rule and three aspects of the Security Rule.... The protocol also covers the requirements of the Breach Notification Rule. In all, the protocol establishes 77 performance criteria and related audit procedures under the Security Rule and 88 performance criteria and related audit procedures under the Privacy and Breach Notification Rules."

Consider Tax Aspects of Continuing Health Coverage for Adult Children If Supreme Court Overturns Health Care Law

"Employers with self-funded group health plans may wish to follow suit and promise to continue providing coverage for their employee's adult children up to age 26. However, employers should note that this decision may have tax implications for the covered adult children. If PPACA is struck down, both the provisions requiring coverage of adult children up to age 26 and the provisions allowing that coverage to be free from federal taxes will disappear."

May 11 FAQs Provide Additional Guidance on SBCs

"Here are some of the topics which are addressed: FAQ 1: Expanding on the circumstances in which an SBC may be provided electronically (discussed in a previous FAQ), the DOL has added a new safe harbor for providing SBCs electronically to participants and beneficiaries in connection with their online enrollment or online renewal of coverage under the plan. FAQ 7: The DOL clarifies that it is permissible to 'combine' SBCs or SBC elements to provide a side-by-side comparison to facilitate comparisons of different benefit package options by individuals shopping for coverage."

Changes in Illinois Civil Union Partner Tax Status

Four other states allow or will allow civil unions: Delaware, Hawaii, New Jersey and Rhode Island, but only Hawaii will recognize civil unions for opposite-sex couples (the Hawaii civil union law is effective January 1, 2012). The implication of the IRS letter for Hawaii and other states with opposite-sex domestic partnerships (such as Nevada, California and Washington) is unknown.

Wisconsin to Begin Tax-Free Treatment of Health Care Coverage of Adult Children

Wisconsin is the last state in the country to conform its state tax treatment of such coverage with federal tax treatment, which means that once this law takes effect, employers will no longer need to worry about imputing income for the value of such coverage to employees in any state.

Wisconsin Bill Passed to Conform State Tax Treatment of Health Insurance Coverage of Adult Children

Although health care reform legislation excluded the value of employer-provided health benefits provided to any employee's child under the age of 27 at the end of the taxable year (not just tax dependents) effective March 30, 2010, several states did not incorporate that change into state law. As a result, there has been some confusion as to whether the value of employer-provided health benefits provided to non-tax dependent children would be subject to state taxes in those states.

Michigan Creates Health Insurance Paid Claims Assessment Act

Michigan has become the newest state to institute an assessment on paid health care claims. Michigan Senate Bill No. 348, effective August 24, 2011, creates the 'Health Insurance Claims Assessment Act' and initiates a 1% assessment on paid health claims.

Extension of Minnesota State Tax Conformity with Federal Tax Treatment of Coverage of Adult Children

[F]or all plan years beginning on or after September 23, 2010, the value of employer-provided health benefits provided to any employee's child under the age of 27 at the end of the taxable year (not just tax dependents) may be excluded from income for Minnesota state tax, as well as federal tax, purposes.

Illinois and New York State Tax Treatment of Domestic Partner Health Coverage

Recent changes to Illinois and New York state laws impact health benefits, specifically the taxation of covering domestic partners, civil union partners and same-sex spouses.

Health Care Reform W-2 Guidance from IRS

The employer will NOT be required to report health care coverage value to retirees or other former employees to whom the employer does not normally issue a Form W-2.