HEALTH CARE BENEFITS NOTICES
Health Care Reform Up In The Air , But Employers Still Need To Be Prepared
BY : BONNIE PANG ATLAS INSURANCE
President Trump ’ s promise to repeal Obamacare looks less and less probable these days , but it is tough to know precisely what lies ahead . Regardless of what happens , it is necessary for you to “ put your blinders on ” for the moment and continue to fulfill your reporting requirements on schedule . Here , we list some of the documents regarding your employer health plan that you must file on an ongoing basis :
1 ) HC-5 EMPLOYEE NOTIFICATION TO EMPLOYER This document , which confirms that an employee has elected to waive health care coverage through his or her employer , must be signed and renewed each January . This form is generally used by those who are covered under another employer ’ s health plan or the health plan of a parent or spouse .
2 ) INDIVIDUAL CREDITABLE COVERAGE DISCLOSURE NOTICE This document confirms that the drug coverage provided by an employer meets the minimum requirements defined by Medicare . The form must be distributed by October 15th of each year to all Medicare-eligible employees — including dependents — who are covered by the employer plan . Atlas further recommends that the notice be distributed to all employees .
3 ) NEW HEALTH INSURANCE MARKETPLACE COVERAGE OPTIONS AND YOUR HEALTH COVERAGE This notice , informing individuals of their eligibility to enroll in the Health Care Exchange , is required for newly hired employees who are subject to the Fair Labor Standards Act . Atlas further recommends that the notice be distributed to all employees .
4 ) SUMMARY PLAN DESCRIPTION ( SPD ) The SPD , along with an overview description of the document , must be provided to all plan participants . Updates or modifications to the SPD should be provided to each covered employee , including those covered under COBRA as they occur .
5 ) SUMMARY OF BENEFITS AND COVERAGES ( SBC ) The SBC , which describes how benefits are received , must be provided to new hires for all plans for which they are eligible . It also must be distributed to all employees enrolled in the plan at least 30 days prior to the contract renewal date .
6 ) FORM 5500 REPORT This report summarizes the total premiums and commissions paid as well as the number of people covered under the plan . The 5500 report must be filed to EBSA by the 7th month after the end of the plan year . The accompanying Summary Annual Report must be provided to each plan participant by the end of the ninth month after the plan year ends .
7 ) GRANDFATHER NOTICE If applicable , this notice , confirming that the plan has not made significant changes to its design or contributions since March 23 , 2010 when the Affordable Care Act went into effect , must be distributed to each newly eligible and current enrollee in the employer plan annually .
Atlas Insurance has been advising clients on employee health benefit plans for decades and is available to answer questions , discuss individual reporting obligations , and review coverage options . You can call us at 808-628-5320 or visit our website at www . atlasinsurance . com .+
Bonnie Pang is Senior Vice President and Manager of Atlas Employee Benefits . Bonnie joined Atlas in 2007 and led the development of the Benefit Consulting Practice at Atlas Insurance to complement the already successful Property and Casualty unit . Bonnie has over 20 years of experience in health insurance and employee benefits , working with medium and large employers in construction , hospitality , law , grocery , retail , non-profit , transportation and education .
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