News that the DOL planned to change Form 5500 surfaced several weeks ago and now more information has become available. In line with recent increased focus from the DOL and IRS on information reporting requirements under ERISA and the Affordable Care Act, these proposed changes have the potential to affect a broad range of health plans, and the employers who sponsor or participate in them.
Currently, employers with less than 100 employees covered by either employer-sponsored health care or a separate plan do not have to report Form 5500. The proposed revisions to the reporting requirements would change that. The DOL argues that in order to ensure that they have access to sufficient information for purposes of ensuring compliance, they will require this information from employers regardless of size.
The information asked of smaller sized plans will be more basic than that required of larger plans, highlighting information such as the name of the insurance company, and the scope of coverage and benefits. The same applies with Form 5500-SF and welfare plans, as those with less than 100 members will be required to report under these new changes.
Notably, the updated Form 5500 would include newly added Schedule J, where information including employees on COBRA, detailed scope of coverage, HIPAA compliance, and claims information would be required.
Many of the changes proposed to Form 5500 are substantive and complex, particularly the lengthy addition of Schedule J. These changes serve to reinforce the importance that the DOL and IRS are placing on information reporting around health plans. Employers requiring guidance may find it useful to partner with a knowledgeable vendor that can assist in understanding the implications of these changes as specifically applicable to the employer’s business.