March 27, 2018
ACA Liabilities Still Need Management
Companies can't let the prospects of reform dupe them into failing to manage past and current Obamacare liability exposures.
Employers and health plans! Don’t let the prospects of reform dupe you into failing to manage past and current Obamacare liability exposures.
Contrary to popular perception, President Trump’s health plan executive orders do not insulate employers or their health plans from all Obamacare compliance or enforcement exposures. Among other things, the Internal Revenue Service continues to enforce Internal Revenue Code rules that require employers to self-identify and report any violations of the 40 listed federal health plan mandates on Form 8928 and pay resulting excise taxes unless and until reform passes.
Furthermore, even if reform eventually passes, reform is unlikely to insulate health plans, their fiduciaries or sponsors from costs and liabilities arising under plan terms and the laws in effect before a post-reform amendment.
Employers and other health plan sponsors, their fiduciaries, insurers and reinsurers, administrative service providers and other vendors should review plans to continue in compliance, while promoting and shaping common sense reforms for the statutes and regulations affecting health plans.
See also: 13 Steps to Take Now to Prepare for ACA
Employer and other health plan sponsors, fiduciaries, insurers and other vendors also should discuss processes for responding to changes and amending plans and associated contracts, to be able to respond as quickly as possible if reform happens.