Indemnity Play with Preventive Care?!?!?!

[Tkruger]

I just spoke with a large companies HR department who told me that they offer staff a Fixed Indemnity plan that offers preventative coverage that will keep their staff from being penalized for not having a QHP. She stated that she expects that to change in the future.

I've not heard anything like this. When I asked the potential client if she received a penalty when she filed her 2K14 taxes she stated she didn't.

This has me scratching my head. How can a FIP with Preventive coverage meet the minimum essential coverage and prevent a penalty?

 

[kgmom219]

I've not heard anything like this. When I asked the potential client if she received a penalty when she filed her 2K14 taxes she stated she didn't.

The average person does not understand MEC requirements. 1095 B's were not sent out this year. So your potential client got asked "do you have health insurance" and clicked "yes" on the box on the 1040. No penalty.

 

[Yagents]

I think he is speaking about the employer plans that recently got outlawed, that cover prev care, but no hospital coverage. The calculator used was faulty, and these plans were passing the AV value test.

But, a couple months ago, CMS declared these to be no longer sold after Nov 26th or something like that, and those in existence, have a 1 year expiration date. And those with these type of plans before 11/26 could get tax credits as it doesn't meet the real definition of MEC.

There is a thread on this somewhere.

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And, employees who own this type of plan are not subject to the penalty.

 

[Tkruger]

The average person does not understand MEC requirements. 1095 B's were not sent out this year. So your potential client got asked "do you have health insurance" and clicked "yes" on the box on the 1040. No penalty.

The greater issue here is the fact that the large company who is providing these benefits is providing incorrect information to the staff per their current agent.

Also, the employer mandate took effect as of Jan 1 2K15. Won't this employer be subject to the penalty due to not offering a Minimum value plan?

 

[AllenChicago]

The average person does not understand MEC requirements. 1095 B's were not sent out this year. So your potential client got asked "do you have health insurance" and clicked "yes" on the box on the 1040. No penalty.

That's what Short Term Medical (STM) clients are doing too. No where at IRS / HHS does it state that STM is not "health insurance".

 

[Yagents]

That's what Short Term Medical (STM) clients are doing too. No where at IRS / HHS does it state that STM is not "health insurance".

That will work for 2014, but NOT 2015 tax year. Every carrier is required to send a 1095B to the IRS and the client showing proof of creditable coverage. It's similar to a 5498 tax form showing proof of IRA/HSA contributions. Goldenrule is sending out emails right now to my GF and Non GF clients asking for everyone's soc sec #'s, as it wasn't required for kids at the time.

 

[kgmom219]

That will work for 2014, but NOT 2015 tax year. Every carrier is required to send a 1095B to the IRS and the client showing proof of creditable coverage. It's similar to a 5498 tax form showing proof of IRA/HSA contributions. Goldenrule is sending out emails right now to my GF and Non GF clients asking for everyone's soc sec #'s, as it wasn't required for kids at the time.

Exactly.

Even more annoyed people next year. What percentage of the public knows there is a form next year required for their 1040's?

 

[HoosierLife]

Exactly. Even more annoyed people next year. What percentage of the public knows there is a form next year required for their 1040's?

Well hopefully they will stay upset long enough for November to roll around...

 

[toddoxley]

That will work for 2014, but NOT 2015 tax year. Every carrier is required to send a 1095B to the IRS and the client showing proof of creditable coverage. It's similar to a 5498 tax form showing proof of IRA/HSA contributions. Goldenrule is sending out emails right now to my GF and Non GF clients asking for everyone's soc sec #'s, as it wasn't required for kids at the time.

This requirement for the 2015 tax year is for both indy & Group health plans ?

 

[Yagents]

This requirement for the 2015 tax year is for both indy & Group health plans ?

I believe so and pretty sure it's on both. This year was optional.

So, for those that get APTC AND have affordable group MEC accessible, 2014 will be the only year that people will get away with it.