Senate GOP Health Care Bill Would Retain Most Existing Health Coverage Reporting Rules

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June 23, 2017

Yesterday morning, Senate Majority Leader Mitch McConnell released a draft version of the Better Care Reconciliation Act, which would retain much of the existing health coverage reporting rules enacted as part of the Affordable Care Act.  Unlike the House bill passed on May 4, 2017 (discussed here and here), which would introduce an age-based health insurance coverage credit and corresponding information reporting requirements, the Senate bill would keep the current premium tax credit (with new restrictions effective in 2020), and leave untouched the information reporting regime under Code sections 6055 and 6056.  Thus, Applicable large employers (ALEs) would still be required to file Forms 1094-C and 1095-C pursuant to Code section 6056, even though the bill would reduce penalties for failure to comply with the employer mandate to zero beginning in 2016.  Similarly, the Senate bill does not eliminate the requirement for providers of minimum essential coverage under section 6055 to report coverage on Form 1095-B (or Form 1095-C) despite eliminating the penalty on individuals for failing to maintain coverage. The Senate bill would, however, repeal the additional Medicare tax and thereby eliminate employers’ corresponding reporting and withholding obligations beginning in 2023.

The fate of this draft bill remains uncertain, as several Republican Senators have already expressed unwillingness to support the bill, which is not expected to find any support among Senate Democrats.  We will continue to monitor further developments on the Senate bill and its impact on the information reporting regime for health insurance coverage.