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HHS Issues Final Rule Regarding Payments to Sponsors of Retiree Prescription Drug Programs

The Department of Health and Human Services recently issued its final rule which implements provisions regarding the reporting of gross covered retiree plan-related prescription drug costs and retained rebates by retiree drug subsidy (RDS) sponsors. The RDS program allows subsidy payments to sponsors of qualified retiree prescription drug plans for Medicare Part D drug costs for individuals who are eligible for, but not enrolled in, a Medicare Part D plan. After consideration, HHS decided against requiring RDS sponsors to report the drug costs and retained rebates because it believed that requiring such reporting would cause RDS sponsors to not participate in the RDS program. The final rule is effective on March 12, 2012. A copy of the final rule can be found here.

IRS Releases 2011 Form 8941 for Small Employers to Claim Health Care Tax Credit

The IRS recently released the updated version of Form 8941 and its accompanying instructions to be used by eligible small employers to calculate the health care tax credit. Generally, a small employer that offers health insurance coverage under a qualifying arrangement may qualify for a tax credit of up to 35 percent of the contributions it makes towards premium costs. The instructions to the Form 8941 include information about what constitutes a qualifying arrangement for purposes of the credit. A copy of the Form 8941 can be found here. A copy of the Instructions can be found here.

January 2012