Bills Easing ACA Health Care Reporting Requirements Passed by Congress
Two bipartisan bills that modernize and streamline reporting requirements under the Affordable Care Act and reduce burdensome healthcare reporting requirements for employers have been passed by Congress and now head to President Biden’s desk to be signed into law.
“Health care for Americans has only gotten better and more accessible since the passage of the Affordable Care Act — just ask anyone who faced lifetime limits or was denied insurance because of a pre-existing condition. These two pieces of legislation will make needed adjustments to modernize and streamline ACA reporting requirements to ensure that they don’t needlessly compromise the privacy of Americans or get in the way of their access to health care. I’m proud to have introduced these pieces of legislation and look forward to seeing them signed by President Biden,” said Sen. Mark Warner (D-VA).
The Employer Reporting Improvement Act eases the compliance burden on employers by allowing certain documents such as statements relating to health insurance coverage to be filed electronically. The Act also ensures privacy is better protected by confirming that the IRS can accept dependents’ and spouses’ full names and dates of birth in lieu of their Social Security numbers.
Other updates include an extension of the time period that an applicable large employer can appeal a penalty for not offering adequate, affordable health insurance to all full-time employees from 30 days to 90 days, thus easing the compliance burden. The Act also sets a six-year statute of limitations for the IRS to levy penalties under the Employer Shared Responsibility provision of the Affordable Care Act.
The Paperwork Burden Reduction Act eases the burden on employers by reducing the number of physical forms that employers must mail to employees under the Affordable Care Act. Employers and health insurers that provide minimum essential coverage are required to report that information to the IRS for each covered individual. Copies of that information must also be provided to each covered individual through 1095-B or 1095-C tax forms. Currently, the IRS only allows 1095-B forms to be provided electronically. The Paperwork Burden Reduction Act extends the current IRS policy to also include 1095-C forms, which will help to eliminate unnecessary paperwork.
“Employers shouldn’t have to jump through unnecessary hoops to provide health care coverage for their employees,” said Sen. Catherine Cortez Masto (D-NV). “These bills provide flexibility to employers, streamline health insurance reporting, and make communication more secure for employees and employers alike. I urge the president to sign them into law as soon as possible.”
