Tax Credit Helps Small Employers Provide Health Insurance Coverage

Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service.  Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt employers, the IRS will provide further information on how to claim the credit.
The IRS will use postcards to reach out to millions of small businesses that may qualify for the credit. The postcards will encourage small business owners to take advantage of the credit if they qualify.
More information about the credit, including tax tips, guides and answers to frequently asked questions, is now available at http://www.irs.gov/newsroom/article/0,,id=220839,00.html

Healthcare Reform Update: Dependent Coverage to Age 26

Effective for plan years beginning on or after September 23, 2010, the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act of 2010 requires group health plans and health insurers that offer group or individual coverage that cover dependents to cover dependents on a parents plan until the dependent’s 26th birthday.

For plan years beginning before January 1, 2014, a group health plan that was in existence on March 23, 2010 does not have to make coverage available to an adult child if the child is eligible to enroll in another employer-sponsored group health plan.

There is no requirement to make coverage available to a grandchild even if that child’s parent is covered as a dependent. Regulations are to be issued defining which dependents to whom coverage must be made available because of this requirement. The definitions of a dependent under existing law, however, remain unchanged.

Employers will likely have to cover additional dependents because of this provision. Keeping track of the coverage eligibility of dependents has always been a problem for employers. Employers are advised to obtain all the information needed for determining dependents’ coverage eligibility before this provision impacts their plan and keep it up to date to minimize paying for ineligible dependents.

Many states have existing laws that require insured plans to provide similar or more expansive coverage of dependents. These provisions still apply to insured plans in those states.

Upcoming Events City Map New Members