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Transparency in the healthcare world has been historically low. And because of this, consumers have no idea how much services actually cost when they need medical care. And when consumers – your employees – don’t have that information, guess who picks up the tab? That’s right, you, the employer, in the form of higher claims costs, and therefore, higher insurance premiums.

The IRS has released draft instructions for the employer health plan reporting requirements contained in the Affordable Care Act (ACA). Applicable large employers, and small employers who offer self-funded plans, now have the information they need to start planning for the required reporting beginning in 2016 for 2015 health plan data.

The Departments of the Treasury, Labor, and HHS (the Departments) have released final rules that amend regulations regarding the definition of excepted benefits. The guidance specifically addresses limited-scope dental and vision plans as well as employee assistance programs (EAPs) and what requirements must be met for such plans to be considered excepted benefits exempt from the requirements of the Health Insurance Portability and Accountability Act (HIPAA) and the Affordable Care Act (ACA). For the most part, the final rules adopt the proposed rules from December 2013.

For those employers who choose to adopt such changes, the new rules provide more flexibility for individuals in either of two scenarios: (i) those changing from employer-sponsored group health coverage to other minimum essential coverage (MEC) options due to a reduction in hours; or (ii) those changing from employer-sponsored group health coverage to a qualified health plan (QHP) during a special enrollment period or annual open enrollment period through a public Marketplace (Exchange).