Articles

In an effort to streamline reporting requirements and improve the process for employers and health insurers, the Employer Reporting Improvement Act (H.R. 3801) introduces significant changes to provisions under the Patient Protection and Affordable Care Act. This legislation impacts how businesses report health coverage information and clarifies key procedures for both employers and individuals.

The Employer Reporting Improvement Act, signed into law on December 23, 2024, updates the reporting requirements under the Affordable Care Act (ACA) to make it easier for employers and health insurance providers to comply while ensuring that individuals have the necessary health coverage.

Enhanced Affordable Care Act (ACA) subsidies lower premium payments for ACA Marketplace coverage by boosting existing ACA subsidies and making some people newly eligible. Enrollees across incomes benefit from these subsidies. For example, low-income enrollees (making up to 150% of the poverty level) became eligible for free or nearly free coverage. Those earning over four times poverty ($124,800 for a family of four), previously ineligible for subsidies, saw their premium payments newly capped at 8.5% of income, eliminating the “subsidy cliff.” Enhanced subsidies have reduced premium payments by an estimated $705 a year for enrollees receiving premium tax credits.

With Donald Trump set to return as president of the United States and the Republican Party holding majorities in both the Senate and the House, questions arise about the future of the Affordable Care Act (ACA) and the potential changes to employer compliance obligations.

With the ACA 1094/1095-C filing deadline approaching, employers need to prepare for this critical compliance requirement. These forms provide essential details about the health insurance coverage offered to employees, helping the IRS enforce ACA mandates. For the 2024 tax year, electronic submissions are due by March 31, 2025, while employee 1095-C forms must be mailed by March 3, 2025. This timeline allows employees to review their coverage for personal tax filings.

For the 2024 calendar year, Applicable Large Employers (ALEs) must distribute Form 1095-C to eligible employees by March 3, 2025. Forms 1094 and 1095-C must be filed with the IRS by March 31, 2025, when filing electronically. The affordability rate for 2025 plan years will rise to 9.02%. ALEs filing 10 or more forms, including Forms 1094-C and 1095-C, must file electronically.

Recent discussions in Washington, D.C., have shifted from efforts to dismantle the Affordable Care Act (ACA) to focusing on the future of its premium subsidies, which are scheduled to end in 2025, as reported by The Washington Post on September 12.