Companies grappling with deadlines associated with the new health care law will get a reprieve of sorts. Regulators will give employers and insurers a six-month grace period for some rules set to take effect Jan. 1. Firms won’t be penalized during the grace period if they are moving to comply. “This is an important step in the right direction,” says James A. Klein, president of the American Benefits Council, one of the employer groups that have been lobbying for more time to comply.
On Oct. 13, the IRS said it would hold off for a year on a requirement that businesses include the value of the health care benefits they provide to employees on W-2s. Employers may voluntarily start reporting the value on W-2s for 2011 – those issued early in 2012 -- but they won’t be required to do so until the 2012 forms are issued. The amount reported is not considered taxable income.
Other key easings involve internal claims and appeals standards. The grace period will delay a rule requiring insurers to make urgent care decisions within 24 hours instead of the current 72 hours; another requiring that firms give workers more information when claims are denied; and a third stating that communications be made in a “culturally and linguistically appropriate manner.”
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also, a softening of rules affecting external appeals for self-insured companies. Regulators are backing away from a requirement that self-insureds with nongrandfathered plans contract with at least three independent review outfits to handle final benefit appeals. Employers with self-funded plans will be allowed to have their third-party administrators do the contracting.
Clarification on rules requiring coverage of kids up to age 26 is included as well. Many companies voluntarily offer coverage to employees’ grandchildren, nieces and nephews if certain conditions are met, such as financial dependency or guardianship. Regulators will allow employers to continue to impose such restrictions without running afoul of the law.
Coming soon: Allowing firms to change carriers and keep grandfather status. Regulators are likely to modify an earlier plan to treat a change in carriers as an automatic reason to end grandfather status. The concern was that such a requirement would lock companies in with a carrier and stifle competition.
-
Stocks Rise to End a Volatile Week: Stock Market TodayThe market's fear index reached and retreated from a six-month intraday peak on Friday as stocks closed the week well.
-
Kiplinger News Quiz, Oct 17 — Longest Government Shutdown?Quiz We covered stories about the shutdown, Medicare and vehicle recalls this week, but why? Test yourself on the latest financial and business news.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Apple Readies for AI Upgrade with New iPhonesThe Kiplinger Letter The tech giant has stumbled when it comes to artificial intelligence, but a new batch of iPhones will help it make headway.
-
Japan Enters a New Era of Risk and ReformThe Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
How Consumers Are Tinkering with Cutting-Edge AIThe Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU EconomyThe Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
How AI Puts Company Data at RiskThe Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
