Minimum Essential Coverage and Large Employer Reporting Requirements are coming up this coming year. Businesses with over 50 employees will have to follow the new IRS guidelines provided via the ACA (affordable care act laws).
Cigna and other U.S. domestic carriers have some good information on this, shown below:
Minimum Essential Coverage (Section 6055) and Large Employer (Section 6056) reporting are required by the Affordable Care Act to help the Internal Revenue Service (IRS) administer compliance with the individual and employer mandates, respectively.
To comply with the Minimum Essential Coverage (MEC) reporting requirement, Each U.S. insurance company is responsible for reporting on covered individuals under our insured medical plans, while self-funded clients are responsible for reporting on all covered individuals under their self-insured plans.
At the same time, all “applicable large employers” (i.e. employers with 50 or more full-time and/or full-time equivalent employees) must also begin preparing to report annually, as part of the Large Employer reporting requirement, on the medical coverage they offer to their full-time employees and their dependent children. On June 17, 2015, the IRS issued draft 2015 forms that will be used for MEC and Large Employer reporting in 2016.
When is the reporting due?
The statements to individuals for both MEC and Large Employer reporting (if applicable) are due by January 31, 2016 for 2015 calendar year coverage. The MEC and Large Employer reporting must be submitted to the IRS by March 31, 2016 if filing electronically or by February 28, 2016 and February 29, 2016, respectively, if filing by paper. Electronic transmittal is required if filing at least 250 forms.
MEC Reporting – Outreach for missing SSNs
To comply with the MEC reporting requirements, insurers and employers of self-insured medical plans are required to make “reasonable attempts” to obtain Social Security Numbers (SSNs) or Tax Identification Numbers (TINs) from individuals whose data they do not have on file for identification purposes for the IRS.
“Reasonable attempts” are defined as up to three attempts to obtain the SSN/TIN before any annual filing. Enrollment can satisfy the first attempt as long as there is a space to provide the SSN/TIN. The second and third attempts are generally required by December 31 of that same year and December 31 of the following year.
Each U.S. domestic insurance carrier will complete the outreach for our insured clients. Self-funded clients are responsible for ensuring they make the three attempts.
Please note that ACA (affordable care act) laws are for only U.S. residents. Thus, all U.S. expatriates are required to follow these guidelines.
Good Neighbor Insurance, here in Gilbert Arizona, provides Arizona medical insurance to those residing in Arizona. Good Neighbor Insurance also provides international travel medical insurance for those taking trips overseas or for those who are residing outside the U.S. You may view our corporate site here at https://www.gninsurance.com/. Or you may email us here at our toll free number, 866-636-9100, or our local Phoenix Metro number at 480-633-9500. Our email is at email@example.com to connect with our professional insurance agents.