Model Notice

Part of healthcare reform administration is the proper notification of specified changes. This review looks only at those provisions where the federal government has issued a Model Notice. It does not include the communication requirements under the healthcare reform legislation, such as the 60-day advance notice requirement or the language on how the medical plans must be described, where no Model Notice or language has been issued and which have different timetables (i.e., the Summary of Benefits and Coverage). Click here *

Dependents to Age 26

Among the first regulations included in the Health Care Reform Act is the requirement that the dependents up to age 26 be allowed for inclusion in an employee’s medical plan. Carrier definitions typically allowed dependent children to be covered to age 19 and then to age 23 (some were 24 and 25) if they were a full time student maintaining 12 credit per semester. The new rules do no only extend the age, but expand the definition. Click here *

Tax Credits

The 2010 federal healthcare reform legislation included a tax credit for small business for paying 50% or more for employee coverage of health insurance, subject to many provisions. With the exception of tax-exempt entities, new tax credit may only be used to offset federal income taxes paid by the small employer, but a carryover of the credit into future tax years is allowable. Tax-exempt entities may use the credit to offset payroll taxes of their employees. That is explained here. Click here *

W-2 Tracking

Employers are required to disclose the aggregate cost of “applicable employer provided coverage” beginning with the 2012 tax year- or with 2013 for an employer that filed fewer than 250 W-2s in the prior calendar year (optional before then). That might be delayed if the final federal language is not ready by then. (Self-funded plans for employers that do not come under federal COBRA laws, such as a church group, are exempted. That exemption does not apply to employers that simply have 2-19 employees.) Click here *

Impact Study

The Health Care Reform Impact Study provides a timetable for employers as to when new laws and provisions will go into effect. Contact Arrow Benefits Group to obtain your firm’s own Impact Study.


* To gain access to these documents, please contact Arrow Benefits Group at [email protected]