Federal Simplification Bills to Become Law

Two HR Policy-supported bills passed the U.S. Senate this week which will provide varying degrees of relief to HR teams by making ACA reporting more bearable for employers. President Biden is expected to sign the bills into law.

Why it matters: The two bills impact the use of 1095-B and 1095-C notices required by employers. 

• These forms are used to demonstrate that the employer is providing health coverage that meets the minimum essential coverage requirements of the ACA. 

• The 1095-C form is used by large and self-insured employers so changes to this form are most impactful to HR Policy members. 

The Paperwork Burden Reduction Act (H.R. 3797) will make reports readily available on demand to employees electronically rather than through the mail.

• It extends flexibility to employers providing 1095-C forms, reducing paperwork mandates while ensuring the form is still available to employees who may need it.

• It codifies the Treasury rule allowing for online access to 1095-B forms.

The Employer Reporting Improvement Act (H.R. 3801) increases the time allowed to respond to preliminary penalty assessments to 90 days, limits penalty assessment record retention to six years, and allows for electronic delivery of statements related to health coverage.

• The bill provides employers with flexibility in the personal information provided for employees, spouses, and children by allowing employers to use birth dates rather than Social Security numbers.