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HCR Update: Tax & Fee Summary Sheet, Material Modification Fact Sheet

Feb 25, 2011

Health Care Reform Update

February 18, 2011

New fact sheet summarizes taxes and fees 

The Patient Protection and Affordable Care Act (or health care reform law) includes several provisions that are expected to generate revenue by imposing taxes or fees. To consolidate information about these provisions, we've developed a new fact sheet that summarizes: 

·         Changes to existing Internal Revenue Code associated with health care reform:

o        Tax/fee  name, including applicable health care reform law section

o        Effective date

o        How the tax/fee is changing 

·         New taxes and fees associated with health care reform:

o        Tax/fee  name, including applicable health care reform law section

o        Effective date

o        Responsible party

o        Tax/fee amount

o        Link to more information (internal version only) 

The fact sheet also includes answers to common questions about taxes and fees related to health care reform.

Material modification notice fact sheets available  

The health care reform law requires plan issuers or sponsors to provide 60 days advance notice of material modifications to the terms of the plan. To comply with this provision, plan sponsors and issuers may need to accelerate quoting and renewal activities, as well as enrollment communications. 

The U.S. Department of Health and Human Services recently provided guidance about when this provision will go into effect. We believe the provision will go into effect no later than March 23, 2012. However, we're still waiting for additional guidance from HHS or the Department of Labor that will help us implement this provision.  

In the meantime, we've created a new fact sheet to help explain this provision, including how it differs from the notice requirements in ERISA.

Early Retiree Reinsurance Program process reminder  

Over the past two months, we've been releasing reports for the Early Retiree Reinsurance Program to clients who have been approved by the Department of Health and Human Services for ERRP funds.

As a reminder, clients need to provide information they receive from HHS back to us before they get their next file from us. The process is outlined in more detail in the documentation accompanying the Early Retiree Information Workbook.

Please review this document to if you have questions about what needs to be done at each stage of the process to get reimbursement funds as quickly as possible.

If you have additional questions, please contact your account representative. 

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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