Health Care Reform Update: Federal PCIP Broker Registration & HCR Affordability Test

We have teamed up with our partners at United Benefit Advisors to bring you the most recent Health Care Reform update:

Federal PCIP Broker Registration Process Open

In May, the Obama administration announced that the high-risk pool program created by PPACA would begin paying agents and brokers for successfully enrolling eligible people into the PCIP program this fall. The PCIP referral program is only open to the 23 states where the federal government runs the PPACA high-risk pool program. HHS will begin paying the $100 flat enrollment fee September 1.

Agents and brokers who wish to become involved can now register. To qualify to participate in the PCIP program, you must:

• be an insurance broker in good standing in your state,
• have your license confirmed through the NIPR database,
• have a valid federal tax identification number (FTIN) or social security number (SSN), 
• agree to accept payments through EFT, and
• submit a completed EFT form for electronic payment.

IRS to issue new health care reform law affordability test
The Internal Revenue Service said it will develop new rules that will make it easier for employers to determine if their health care plans are "affordable" and exempt from a stiff financial penalty mandated by the health care reform law. That notice is expected to be published in the Aug. 17 Federal Register.

In rules proposed Friday that were welcomed by employers, the IRS said it will develop a safe harbor in which coverage would be considered affordable so long as the premium contribution for single coverage did not exceed 9.5% of employees' W-2 wages, instead of employees' household income (which employers generally do not know). The IRS also affirmed that the 9.5% affordability test is to be applied only on single coverage, allowing employers to charge higher amounts for family coverage.