January 8, 2019

Annual Health Plan Reporting Reminders (article)

  • MEWA Reporting - 2018 Form M-1

If you sponsored a multiple employer welfare arrangement (MEWA) including an association health plan (AHP) in 2018, make certain that you file the 2018 Form M-1 annual report by March 1, 2019.  This form is intended to ensure that such plans are complying with the Affordable Care Act, the Health Insurance Portability and Accountability Act, and other federal related laws.  Failure or refusal to file a completed or accurate Form M-1 could result in penalties of up to $1,558 per day (indexed for 2018). 

With regard to AHPs, the Department of Labor (DOL) issued final rules and standards for establishing AHPs last summer (see our prior Benefit Beat and Health Reform Bulletin for a summary of these rules).  An AHP is a MEWA in that it is comprised of two or more unrelated employers, including self-employed individuals. This means the rules applicable to MEWAs, specifically, the Form M-1 reporting obligation, likewise applies to an AHP.  Only MEWAs offering or providing medical care benefits file the Form M-1.  If the arrangement only offers or provides non-medical benefits, such as life insurance or disability benefits, then a Form M-1 is not required.  The DOL provides a tip sheet for AHP/MEWA administrators to assist in filing its Form M-1.

As a reminder, the Form M-1 can only be submitted electronically through the DOL’s Online Filing System (http://www.askebsa.dol.gov/mewa).  In addition, plans required to file a Form M-1 must also file the Form 5500 regardless of plan size or type of funding. 

  • Annual Reporting Reminder - Medicare Part D Disclosure Notice to CMS

All group health plans, whether insured or self-funded, are required to provide notices of creditable or non-creditable coverage to the Centers for Medicare and Medicaid Services (CMS) on an annual basis. The Creditable Coverage Disclosure Form filing must be accomplished electronically, and is due within 60 days of the commencement of the plan year. For calendar year plans, this means the disclosure filing must be accomplished no later than March 2, 2019. In addition, this disclosure form must be completed within 30 days upon other events such as when the prescription drug benefit is cancelled, or if any material change in the prescription drug benefits that would cause it to change status from creditable to non-creditable, or vice versa. Guidance and instructions, as well as the disclosure form, are available on the CMS website.

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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