Relief to Insurance Companies administering certain Self-Insured Plans

Notice 2011-78 provides relief to insurance companies administering certain self insured arrangements from the information reporting requirements under Section 6050W Insurance companies may rely on the notice until the  regulations are amended.

Document Excerpt

Upon further consideration, the Treasury Department and the Internal Revenue Service have decided to amend the existing regulations under section 6050W to expressly provide that an insurance company or an affiliate administering a self-insured arrangement on behalf of an employer or other entity on a cost-plus basis, or under an Administrative Services Only (ASO) plan or an Administrative Services Contract (ASC) plan, will not be treated as a third party settlement organization. Insurance companies and their affiliates may rely on the interim guidance provided in this notice until the regulations are amended.

 

Link http://www.irs.gov/pub/irs-drop/n-11-78.pdf

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