Today, both the House of Representatives and the U.S. Senate are expected to pass the “Tax Cuts and Jobs Act” (recently re-named due to Senate rules related to the length of the name of the bill). While all of the details related to the new legislation will become clearer over time, one key provision that is catching quite a bit of attention (including ours) is the provision impacting the individual mandate that ALL citizens be covered by a qualified health insurance plan.
Per the new legislation, the penalties associated with the individual mandate as set in the Affordable Care Act have been repealed beginning in 2019. The impact this will have on the current healthcare climate as well as the enrollment numbers for employer sponsored plan is unclear.
It is important to note that the new tax bill does not address the employer mandate as set forth in the Affordable Care Act, nor does it appear at this time to address the reporting requirements under Sections 6055 & 6056 as they pertain to forms 1095.
Per the Affordable Care Act and current requirements in place by the IRS, Applicable Large Employers are still required to offer coverage that meets minimum actuarial standards and report that coverage each year via sections 6055 & 6056.
As further details emerge, GDP Advisors will work to keep you updated on future developments.