Congress has now passed and the President has signed comprehensive health care reform legislation. These health care reforms will mean significant changes for nonprofit organizations, their employees, and the people they serve.
What Do Nonprofit Employers Need to Know?
Small Employer Credit: IS and its members advocated successfully for the application of new employer incentives to provide health insurance for employees to both nonprofit and for-profit employers. The IRS has issued an announcement that it has released an updated draft of Form 8941 that will be used by tax-exempt organizations and small businesses to calculate the credit. Qualifying tax-exempt organizations will claim the credit on a revised form 990-T. LEARN MORE.
- How do I determine how to qualify for and claim the credit?
- How do I calculate my small employer credit?
- What resources and guidance have the IRS provided?
New Reporting Requirements: As a result of the enactment of the Patient Protection and Affordable Care Act (PL 111-148), there are new 1099 information reporting requirements for the purchase of goods totaling $600 or more by both for-profit and nonprofit organizations. LEARN MORE.
Grandfathered Status for Existing Health Care Plans: The Department of Health and Human Services (HHS) has published an interim final rule for the status of existing health care plans under the new health reform law. Under the current rule, certain changes to insurance coverage offerings could lead to organizations, including nonprofits, losing their "grandfathered" status, which would impose a number of immediate and potentially burdensome new requirements before systems are in place to help control costs. IS has submitted comments to the IRS and HHS, urging them to consider waivers for small and medium sized nonprofits until the health care exchanges are in place in 2014.Special Rules for Nonprofit Hospitals: The new health care law also imposes new standards for maintaining the tax-exempt status of nonprofit hospitals. LEARN MORE.
What's Next?
The Internal Revenue Service (IRS) and the Department of Health and Human Services (HHS) are already beginning the implementation process of this landmark legislation, issuing guidance and working to determine the cost and scope of governing regulations. Some of the law's provisions will take effect immediately, like the small-employer credit provision, while others will be instituted over the next four years.
- Implementation timeline (PDF)
- HHS and Administration guidance and resources
- Department of Labor guidance and resources
- National Coalition on Health Care resources
