Somebody Want to Break the Bad News?

[RayNY]

I missed that line, guess they are married.

They are not going to be happy, especially if they're expecting a rate decrease...

As for the IRS reporting, here's a citation from their 2014 draft documents for corporations (Form 1120, specifically, thanks to AC who posted them a few months back): "Information reporting requirements for
health insurance offers and coverage. Under the Affordable Care Act, employers that offer (or fail to offer) and others that provide minimum essential coverage to individuals are required under sections 6055 and 6056 to provide certain information to the IRS and to the individuals. The information is required for calendar years beginning after December 31, 2014, but may voluntarily be filed with the IRS and provided to individuals for 2014. For more information, see the final regulations under sections 6055 and 6056. Also, for information related to the ACA..." http://www.irs.gov/pub/irs-dft/i1120--dft.pdf

So, they're supposed to, but don't have to, for this year. For FY 1/1/15-12/31/15 they must. Looks like a bunch will end up sliding through, I'd doubt many companies choose to voluntarily report.

 

[houcoogster]

I missed that line, guess they are married.

They are not going to be happy, especially if they're expecting a rate decrease...

As for the IRS reporting, here's a citation from their 2014 draft documents for corporations (Form 1120, specifically, thanks to AC who posted them a few months back): "Information reporting requirements for
health insurance offers and coverage. Under the Affordable Care Act, employers that offer (or fail to offer) and others that provide minimum essential coverage to individuals are required under sections 6055 and 6056 to provide certain information to the IRS and to the individuals. The information is required for calendar years beginning after December 31, 2014, but may voluntarily be filed with the IRS and provided to individuals for 2014. For more information, see the final regulations under sections 6055 and 6056. Also, for information related to the ACA..." http://www.irs.gov/pub/irs-dft/i1120--dft.pdf

So, they're supposed to, but don't have to, for this year. For FY 1/1/15-12/31/15 they must. Looks like a bunch will end up sliding through, I'd doubt many companies choose to voluntarily report.

Ray they have to get a form from the marketplace before they file their taxes. There isn't anyway around this read the new IRS forms for individuals. It asks this specific question! Say bye bye to your EIC....Mrs. Morales

 

[kgmom219]

Its TEXAS. We aren't real strict here on actually getting a marriage license/certificate.

They probably do file separate.

 

[houcoogster]

Its TEXAS. We aren't real strict here on actually getting a marriage license/certificate.

They probably do file separate.

My sis is a Lawyer....there is no time limit for being common law....all that is required is for you to hold yourself out as being married. And telling a reporter for an article in the Houston Chronicle is definitely holding yourself out as being married....they only told a few million people.

Also it is very common in the Hispanic community for the Wife to keep her maiden name.....just an FYI.

 

[bluediamond]

So, how is the IRS going to catch this?
Do the new tax forms ask for proof of employer coverage access?

Seems to me, the most successful agents are still up working at this hour of the night.

HCR: Requirements for reporting minimum essential coverage to IRS (A14-317)
The Affordable Care Act (ACA) added a section to the Internal Revenue Code (IRC 6055) that requires health insurance issuers to report minimum essential coverage information to the IRS. Insurers will be required to report the name, address and Social Security number on all covered individuals, whether they are a group or individual member. We need your help obtaining the SSNs from your groups at renewal and subsequent enrollment.

 

[kgmom219]

I love our common law marriage laws!

I especially have enjoyed it when subpoenas have hit my desk, requesting a copy of enrollment form, so they could have a document proving a "spouse".

 

[houcoogster]

I love our common law marriage laws!

I especially have enjoyed it when subpoenas have hit my desk, requesting a copy of enrollment form, so they could have a document proving a "spouse".

Yes Mam...you got it!

You could live with someone for 30 years and not be common law just as long as you don't hold yourself out as being married....ie insurance forms, neighbors, co-workers, friends, family ect....newspaper articles...lol

 

[Ann H]

No subsidy if she is ELIGIBLE FOR group coverage that is affordable/adequate. It doesn't matter if they are married or not. The article states that she could have gone on his group plan, therefore she is eligible.

The article insinuates that the coverage for the man (as an employee) is more affordable than the $660 a month it would cost to add the spouse.

Let's say the "Employee-only" cost is $600 a month, but the employer pays 50% (which is the bare minimum Employer Contribution). That means the man's premium is $300 at the very most, and probably actually less than that. The "affordable" calculation of 9.5% means the family must earn less than $37,894 in order for a $300 premium to NOT be affordable.

The article says they are in Texas (which did not expand Medicaid) and that the kids are on Medicaid. If they earn $31,590 for a family of 6 they are at Medicaid level.

The article also says, "But at almost $660 per month, the couple can't afford to add her to the plan. The cost would add up to half Garza's paycheck." Okay, if $660 is half of his paycheck, then $1320 is all of his paycheck. Let's say he gets paid twice a month (26 times a year). Then his income is $34,320. Add her income to that, and subtract any expenses to get to MAGI.

So, it is POSSIBLE that the group coverage is not affordable. However, it is also PROBABLE that the man doesn't actually pay $300 for his share of the premium, because of the way the article states their budget woes. So, my guess is that the group insurance is "affordable", and the subsidy is bogus. Just a guess, but that's my assumption.

 

[RayNY]

Ray they have to get a form from the marketplace before they file their taxes. There isn't anyway around this read the new IRS forms for individuals. It asks this specific question! Say bye bye to your EIC....Mrs. Morales

They'd have to answer that question incorrectly (or lie) on the initial application in order to qualify for the subsidy in the first place. We presume they would answer that same question the same way on their tax filing. They might answer correctly and incriminate themselves, but I'd bet they don't.

The question was, how does the IRS catch this (saying group coverage isn't available, but it is)? The answer is the employer's reporting, which is voluntary this year and mandatory next year.a

 

[somarco]

Somarco wins with the most Waldo's

It sounds so dirty when you say it that way.

Moving right along .........

I have a client with Cigna that did not provide (was not asked?) for SSN on their Ocare plan. They got a letter from Cigna asking for SSN for all family members ............ so they can report to the IRS.

Just saying.