June 5, 2009 – Changes To New Health Insurance Premium Reporting Requirement
As we previously reported (here), Minnesota recently enacted a law (Minn. Stat. § 290.0678) requiring employers to provide annual statements to employees identifying the amount of health insurance premiums paid through a Section 125 cafeteria plan sponsored by the employer. Our alert identified a number of issues created by Section 290.0678. The legislature has resolved some (but not all) of those issues by amending the law.
The amendment clarifies the following three issues:
- employers must provide the statement required by Section 290.0678 only upon request from an employee;
- the employer must provide the statement only if the employee requesting it did not have coverage under a health care plan offered by the employer during the twelve (12) months preceding the date on which the employee began participating in the Section 125 Plan; and
- the statement need only include information regarding the premiums paid each month of a taxable year that is included in the employee’s first twelve (12) months of participation in the employer’s Section 125 plan.
These changes should significantly reduce the number of statements an employer must provide. However, to identify whether an employee is actually entitled to a statement, and whether there is any information to report, the employer must track information regarding items (2) and (3) above. As a result, it may be easier for employers to provide statements to all employees upon request, regardless of whether the conditions described in items (2) and (3) above have been satisfied.
Please contact us if you need assistance complying with Section 290.0678.
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The information contained in this ALERT is intended for general information purposes only and does not constitute legal advice relative to a specific situation.