Coalition Welcomes Bill to Address ACA Reporting Rules

Coalition Welcomes Bill to Address ACA Reporting Rules

In a letter sent today, a coalition of 176 employers and trade associations joined together to endorse legislation aimed at providing employees and employers with a more effective means for determining eligibility for Exchange tax credits under the Affordable Care Act (ACA). The letter was sent to the sponsors of S. 1996, the Commonsense Reporting Act of 2015, Senators Mark Warner (D-VA) and Rob Portman (R-OH).

"On behalf of the undersigned businesses, national, state and local trade associations, and organizations representing millions of American workers and their families, and hundreds of thousands of job creators, we write in support of S. 1996, the Commonsense Reporting Act of 2015. We appreciate your leadership in introducing S. 1996 to help reduce confusion surrounding the Affordable Care Act's (ACA) Exchange tax credit eligibility, and provide businesses and insurance carriers with regulatory relief under the law's reporting requirements," said the signers of the letter.

The letter was circulated by the E-Flex Coalition, which is led by the Retail Industry Leaders Association, American Staffing Association, Food Marketing Institute, and Aetna.

Under the ACA, employers and insurance carriers are required to gather numerous pieces of data on a monthly basis and report them annually to the Internal Revenue Service (IRS) and individuals. The information reported is intended to verify compliance with the individual and employer mandates, and administer advanced premium tax credits and cost sharing subsidies under the state and federal-facilitated insurance Exchanges.

The Commonsense Reporting Act of 2015 creates a front-end voluntary prospective reporting system to improve the accuracy of Exchange tax credit eligibility determinations. Under voluntary prospective reporting, data that would have been reported at the end of the year could now be reported at the beginning of the eligibility process, and help mitigate issues with inaccurate tax credit determinations. The legislation would also protect privacy by enabling the IRS to amend the requirement that businesses and insurers collect and report Social Security numbers for spouses and dependents, and authorizes electronic transmission of reporting data.

"S. 1996 is a first step in providing individuals, employers, insurers, states, and the federal government with more clarity about who may be eligible for premium tax credits, and potentially minimizing the prospects of individuals being subjected by the IRS to repayment of advanced premium tax credits or cost sharing subsidies in cases in which Exchanges made an incorrect eligibility determination," added the signers of the letter.

The E-FLEX Coalition first raised the concept of voluntary prospective reporting to the Administration four years ago, and has been working since then to incorporate the system into the regulatory structure of these ACA requirements. A House-companion bill, the Commonsense Reporting and Verification Act of 2015 (H.R. 2712), was introduced by Representatives Diane Black (R-TN) and Mike Thompson (D-CA).

Full letter text and list of signers below.

The Employers for Flexibility in Health Care (E-FLEX) is a coalition of leading trade associations and businesses in the retail, supermarket, temporary staffing, restaurant, hospitality, construction, and other service-related industries, as well as employer-sponsored health plans insuring millions of American workers. Members of the E-FLEX Coalition are strong supporters of employer-sponsored coverage and have been working to implement the Affordable Care Act (ACA) in ways that help ensure that employer-sponsored coverage – the backbone of the US health care system – remains a competitive option for employees.

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September 17, 2015

 

The Honorable Mark Warner (VA)                                                The Honorable Rob Portman (OH)
U.S. Senate                                                                                       U.S. Senate     
475 Russell Senate Office Building                                              448 Russell Senate Office Building
Washington, D.C.  20510                                                                Washington, D.C.  20510

Dear Senators Warner and Portman:

On behalf of the undersigned businesses, national, state and local trade associations, and organizations representing millions of American workers and their families, and hundreds of thousands of job creators, we write in support of S. 1996, the Commonsense Reporting Act of 2015. We appreciate your leadership in introducing S. 1996 to help reduce confusion surrounding the Affordable Care Act's (ACA) Exchange tax credit eligibility, and provide businesses and insurance carriers with regulatory relief under the law's reporting requirements.

Under the ACA's reporting requirements (Code sections 6055 and 6056), employers and insurance carriers are required to gather numerous pieces of data on a monthly basis and report them annually to the Internal Revenue Service (IRS) and individuals. The information reported is intended to verify compliance with the individual and employer mandates, and administer advanced premium tax credits and cost sharing subsidies under the state and federal-facilitated insurance Exchanges. Unfortunately, the information currently required is unnecessarily complex for employers and individuals and must be reported to the IRS at the end of a tax year, not during the Exchange enrollment process when it could provide more clarity on which individuals are eligible for tax credits.

S. 1996 is a first step in providing individuals, employers, insurers, states, and the federal government with more clarity about who may be eligible for premium tax credits, and potentially minimizing the prospects of individuals being subjected by the IRS to repayment of advanced premium tax credits or cost sharing subsidies in cases in which Exchanges made an incorrect eligibility determination. The bill creates a voluntary prospective reporting system to make available important data during the Exchange enrollment process, rather than at the end of a tax year, and streamlines the reporting requirements for employers and insurers. S. 1996 also protects the privacy of individuals' Social Security numbers, allows for electronic transmission of reporting information, and establishes oversight of reporting and tax credit verification. These are commonsense changes that help individuals, employers and insurers.

Again, thank you for your leadership on this critical issue. We look forward to working with you and your colleagues in Congress in a bipartisan manner to enact S. 1996, the Commonsense Reporting Act of 2015, this year.

Sincerely,

7-Eleven, Inc.

Aetna

Albertsons Companies, Inc.

Aldin Associates

Allegis Group

America's Health Insurance Plans

American Eagle Outfitters

American Hotel and Lodging Association

American Rental Association

American Staffing Association

American Supply Association

Associated Builders and Contractors, Inc.

Associated Equipment Distributors

Associated General Contractors of America

Auto Care Association

Automotive Parts and Services Association

AutoZone

Benefitfocus

Best Buy Co., Inc.

B2b Solutions, LLC

CarMax, Inc.

College and University Professional Association for Human Resources

Costco Wholesale

Council for Affordable Health Coverage

FCA US LLC (Fiat Chrysler Automobiles)

Flash Foods

Food Marketing Institute

GAP, Inc.

Herzog Insurance Agency

Holmes Oil

HR Policy Association

Humbolt Petroleum

Hy-Vee, Inc.

IKEA

International Franchise Association

J.C. Penney Corporation, Inc.

Jo-Ann Fabric & Craft Stores

Kelly Services

Lowe's Companies, Inc.

ManpowerGroup

Modell's Sporting Goods

National Association of Convenience Stores

National Association of Health Underwriters

National Association of Home Builders

National Association of Wholesaler-Distributors

National Business Group on Health

National Club Association

National Council of Chain Restaurants

National Federation of Independent Business

National Grocers Association

National Public Employer Labor Relations Association

National Restaurant Association

National Retail Federation

National Roofing Contractors Association

North American Home Furnishing Association

PepBoys

Petco Animal Supplies

PetSmart, Inc.

QVC

RandstadUS

Retail Industry Leaders Association

Savin Burgers

Savin Foods

Sears Holdings Corporation

Self-Insurance Industry of America

Society for Human Resource Management

Society of American Florists

Spinx Company

Staples, Inc.

U.S. Chamber of Commerce

Wallis Companies

Walmart

Wenzell's Farm, LLC

Whole Foods Inc.

W.S. Badcock Corporation

 

Alabama Restaurant & Hospitality Alliance

Alaska Hotel & Lodging Association

Arizona Lodging & Tourism Association

Arizona Retailers Association

Arkansas Hospitality Association

Automotive Aftermarket Association of the Carolinas and Tennessee

Automotive Aftermarket Association Southeast

California Hotel & Lodging Association

California, Nevada, Arizona Automotive Wholesalers Association

California Retailers Association

Chesapeake Automotive Business Association

Colorado Hotel & Lodging Association

Connecticut Lodging Association

Hotel Association of Washington, D.C.

Florida Restaurant & Lodging Association

Florida Retail Federation

Georgia Association of Convenience Stores

Georgia Hotel & Lodging Association

Georgia Restaurant Association

Georgia Retail Association

The Hawaii Lodging & Tourism Association

Illinois Hotel & Lodging Association

Indiana Restaurant & Lodging Association

Indiana Retail Council

Kentucky Retail Federation

Louisiana Hotel & Lodging Association

Louisiana Restaurant Association

Louisiana Retailers Association

Maine Innkeepers Association

Maine Restaurant Association

Maryland Hotel & Lodging Association

Massachusetts Lodging Association

Retailers Association of Massachusetts

Michigan Lodging & Tourism Association

Michigan Retailers Association

Midwest Automotive Parts and Service Association

Minnesota Lodging Association

Minnesota Retailers Association

Mississippi Restaurant Association

Missouri Restaurant Association

Missouri Retailers Association

Montana Lodging & Hospitality Association

Montana Retail Association

Nebraska Hotel & Motel Association

Nebraska Retail Federation

Nevada Hotel & Lodging Association

Nevada Restaurant Association

Retail Association of Nevada

New Hampshire Lodging & Restaurant Association

New Hampshire Retailers Association

New Jersey Hotel & Lodging Association

New Jersey Retail Merchants Association

New Mexico Retail Association

Hotel Association of New York City, Inc.

New York State Association of Service Stations and Repair Shops, Inc.

New York State Automotive Aftermarket Association

New York State Hospitality & Tourism Association

New York State Restaurant Association

Independent Garage Owners of North Carolina

North Carolina Restaurant & Lodging Association

North Carolina Retail Merchants Association

North Carolina Tire Dealers Association

North Dakota Petroleum Marketers Association

North Dakota Propane Gas Association

North Dakota Retail Association

Ohio Council of Retail Merchants

Ohio Hotel & Lodging Association

Ohio Restaurant Association

Oklahoma Hotel & Lodging Association

Oklahoma Restaurant & Lodging Association

State Chamber of Oklahoma

Oregon Restaurant & Lodging Association

Pennsylvania Association of Automotive Trades

Pennsylvania Collision Trade Guild

Pennsylvania Gasoline Retailers

Pennsylvania Restaurant & Lodging Association

Tire Dealers Association of Western Pennsylvania

Rhode Island Hospitality Association

South Carolina Restaurant & Lodging Association

South Carolina Retail Association

South Dakota Retailers Association

Southwest Car Wash Association

Tennessee Hospitality & Tourism Association

Texas Hotel & Lodging Association

Texas Independent Automotive Association

Texas Retailers Association

Texas Tire Dealers Association

Utah Food Industry Association

Utah Hotel & Lodging Association

Utah Retail Merchants Association

Vermont Chamber of Commerce

Virginia Hospitality & Travel Association

Virginia Retail Federation

Virginia Retail Merchants Association

Washington Lodging Association

Washington Retail Association

West Virginia Hospitality & Travel Association

West Virginia Retailers Association

Alliance of Wisconsin Retailers

Wisconsin Hotel & Lodging Association

Wyoming Lodging & Restaurant Association

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