As details of health reform begin to unfold, it is evident that employers will be burdened with additional reporting and disclosure requirements to both their employees and the government. One example already addressed in the blog is the inclusion of health benefits in the employee’s Form W-2. There are three additional reporting requirements we will highlight and address in separate articles: grandfathered disclosure statement, CHIPRA, and Creditable Drug Coverage.

Health Reform is adding reporting requirements for employers on Form W-2s with Section 9002 of the PPACA. Beginning in 2011, employers will be required to include the aggregate cost of employer-sponsored health insurance coverage on every employee’s W-2 form. The cost will not be included in the employee’s taxable income. Rather, the intent of the W-2 reporting is to track benefit values for the 40% excise tax on Cadillac plans beginning in 2018.

While there is still plenty of time before the Annual Election Period begins for individuals enrolling in Medicare Advantage plans, there are provisions of PPACA that impact these programs.