HHS, DOL and Treasury announced two important rules – final SBC regulations and additional information regarding the automatic enrollment and employer penalty requirements

From the KT Health and Welfare Team:

This morning HHS, DOL and Treasury announced two important rules – final SBC regulations and additional information regarding the automatic enrollment and employer penalty requirements.

Summary of Benefits and Coverage (SBC)

As noted during a prior update, the agencies have delayed the application of the final SBC rules to the first plan year on or after September 23, 2012.  Effectively, this means that SBCs must be issued for the 2013 calendar year, as well as new hires and special enrollments beginning January 1, 2013.  Although additional clarification may be needed from the agencies, it appears that employers have until December 1, 2012 to issue SBCs effective for the 2013 calendar year.  Our team will be preparing an analysis of these rules for distribution next week.  The public announcement can be found at the following link:

http://www.hhs.gov/news/press/2012pres/02/20120209a.html

Auto Enrollment and Employer Penalty Requirements

Separately, the IRS issued Notice 2012-17.  The Notice provides information on questions from employers and other stakeholders regarding the provisions of the Affordable Care Act governing automatic enrollment, the employer penalty, and the 90-day limitation on waiting periods.  The Notice also outlines various approaches that the agencies are considering proposing in future regulations or other guidance. Our team will also be preparing and analysis of the Notice for distribution next week.  The Notice can be found at the following link:

http://www.irs.gov/pub/irs-drop/n-12-17.pdf
Mark L. Stember
Kilpatrick Townsend & Stockton LLP
Suite 900 | 607 14th Street, NW | Washington, DC  20005-2018
office 202 508 5802 | cell 202 714 5019 | fax 202 585 0018
mstember@kilpatricktownsend.com | My Profile | vCard

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