Have you noticed how nosy your Health Insurance Carriers have been getting recently?
You are not alone, this is a real thing. First I noticed a massive uptick this past year in those nasty ‘Employer Verification’ Forms the Carriers have begun regularly releasing at renewal. It’s like we’re jumping through all of those difficult hoops we had to jump through way back when we started our policies all over again. Counting our employees, submitting Quarterly Wage and Withholding Reports and confirming YES, THESE EMPLOYEES DO EXIST. This is annoying. Even Obama thinks so. (I couldn’t resist)
Why are they doing this?
Because they have to comply with Affordable Care Act (ACA) Reporting too. That’s right, they have to file a 1095 form just like you, or if you have less than 50 employees- they are doing it for you. Trust me. They don’t like it either. In fact, some of these forms they are asking you to submit, are because they are looking for ways to get out of it doing it. If they get more information from your group and determine you have over 50 lives (even though you only insure 25), then they can say “UH OH- that’s YOUR job. Ha Ha.” Okay so they won’t laugh at you…to your face…
What are they doing next?
They are sending letters to every single member they have on the books verifying Social Security numbers. Then they will actually be reconciling them with the IRS. If the name and number don’t match with the IRS, they will be sending a letter directly to the member, notifying them of this fact.
What if I don’t WANT the Carrier to communicate directly with my Employees?
Tough. They are legally mandated to do it.
Email me if you want to see samples of the various letters they will be sending out. Oh and they won’t just be collecting employee and dependent data, they will also be verifying your Employer Identification Number in the coming months as well. You should know the IRS reserves the right to impose penalties on companies/individuals who have not provided accurate information for reporting. (cue hammer dropping)
Don’t worry. We’ll get through this. Together. Have a great day!