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 Tax Time! How to Document Coverage
Mercer
For the first time, tax forms include a line for insurance coverage. It appears as line 11 on the 1040EZ, and as line 38 on the 1040A. In each instance, the line reads "Health care: individual responsibility (see instructions)" followed by a box to check for full-year coverage.
Tax filers without full-year coverage must complete Form 8965. While many employees will be able to check "full-year coverage", they may still require documentation of coverage in case of an audit. Here are some suggestions for documentation.
Additional Resources
Form 1040EZ
Instructions for Form 1040EZ
Form 1040A
Form 8965
Instructions for Form 8965
IRS Releases Publications 502 and 503 for 2014 Tax Returns
Compliance Dashboard
Just in time for tax season, the IRS issued revisions of Publications 502 and 503. Publication 502 lists permissible qualifying medical expenses, and Publication 503 explains how to qualify for tax-favored dependent care expenses.
Both forms are posted online.
Publication 502
Publication 503
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Client Question of the Month
Q: Our employee's VISA is expiring and she must return to her own country. Should we offer COBRA?
A: Although it is likely that the plan will not cover treatment once the person leaves the United States, voluntary or involuntary termination of employment (for reasons other than gross misconduct) is a qualifying event and you must offer COBRA. Plan sponsors, take a moment to check your plan to determine if eligibility is limited to U.S. residents.
March 1 Deadline Nears for Submission of Creditable Coverage Disclosures to CMS
Marsh Consulting Group
Employer-sponsored group health plans that offer prescription drug coverage to Part D-eligible individuals are required to submit an electronic Disclosure Notice to CMS on an annual basis. This requirement applies to employer-sponsored Retiree Health Plans (unless the plan applied for the Retiree Drug Subsidy Program) and employer-sponsored plans extended to active employees and their covered spouses who are enrolled in or eligible for Medicare.
This annual notice provides CMS with current information regarding the plan's creditable or non-creditable coverage status. Plan sponsors with calendar year plans must submit a new disclosure to CMS by March 1, 2015. Learn more here.
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What Do Health Experts See in Our Near Future?
LA Times
Doctors, authors, researchers and more weigh in on what they see ahead for our health - perhaps in the next year and then in five years. Read more.
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