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HCR Update: Dependent Tax Treatment, Multistate Employers Fact Sheet, etc.

Apr 29, 2011

Health Care Reform Update

April 29, 2011

Lawmakers address dependent tax treatment 

To align the federal tax code with the health care reform law, the IRS issued a notice in March 2010 that allows employees to exclude from their gross income any employer-sponsored accident or health insurance benefits for children younger than 27. However, some states - including California - did not make similar changes to state tax code in 2010.  

On April 7, 2011, Gov. Jerry Brown signed a bill that makes health care benefits for children under age 27 exempt from taxable income in California. The law took effect immediately, and it applies to tax returns for 2010 and future years. For more information, go to 

Note: We do not provide tax or legal advice to our clients/customers. Clients/customers who have questions about tax treatment of dependent coverage should rely on their own third-party advisers and the state and federal tax agencies for answers. 

Deadline tomorrow for Early Retiree Reinsurance Program applications 

Due to overwhelming response, the U.S. Department of Health and Human Services will no longer accept applications for the Early Retiree Reinsurance Program after April 30, 2011. Groups that have not already applied for the program and want to apply should do so immediately. This announcement does not affect groups that have already applied for and are participating in the program.  

Also, the Centers for Medicare & Medicaid Services has released a new report announcing that the Early Retiree Reinsurance Program has provided more than 1,300 employers across all 50 states with nearly $1.8 billion in reimbursements, which have helped preserve the availability of health benefits for early retirees and reduce increases in plan participant costs.

New fact sheet explores key issues for multistate employers 

The federal health care reform law has far-reaching impacts across all markets and states. However, the law allows for some flexibility for states to include additional reforms or requirements. This could have an impact on employers that have plans in multiple states or have enrollees in multiple states.  

We've developed a new fact  sheet that summarizes key issues these employers need to consider as they implement health care reform requirements. Topics covered include:

·         Benefit mandates

·         Dependent coverage limiting age

·         Dependent coverage tax treatment

·         Exchanges

·         Grievances and appeals - notice requirements

·         Minimum medical loss ratios (fully insured only) 

Broker Source online news is live now!

You asked us to find a better way to keep you informed. We are pleased to announce the new Broker Source online news site,, is now at your disposal anytime day or night. 

This site is stocked with Anthem news and industry information as well as an assortment of educational tools and resources to help you assist your clients. Broker Source online news has a lot of the same information we currently e-mail to you but is now easy to scan, simple to search and focuses on what's most important to you! 

Starting in May, go to Broker Source to access the latest information on health care reform and what we're doing to address it.

Now you have a single, reliable resource for health care reform information.

This content is provided solely for informational purposes: It is not intended as and does not constitute legal advice. The information contained herein should not be relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisers.


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