On September 6, 2013 the IRS issued the long awaited rules describing how health insurance companies, government plans, and employers will provide the federal government the information needed to enforce the Affordable Care Act.
One set of rules address the reporting requirements for health insurance issuers, self-funded employers, and government-sponsored health plans. Reporting requires these entities to disclose who had minimum essential coverage monthly for the prior calendar year. That information is then sent to all covered individuals to enable them to file their taxes.
The second set of rules describe the reporting requirements for applicable large employers, employers of 50 or more. These employers must report the type of coverage employees had throughout the calendar year.
Both sets of rules require an entity to report an overwhelming amount of information. The rules make several comments that changes and simplifications are expected. In sum, employers should familiarize themselves with the type of information that is required, but should wait for further guidance from the IRS to begin compliance.