W-2 Guidance Update and CHIPRA Notice

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W-2 Reporting Guidance

The W-2 reporting guidance provides employers with the calculations to complete the W-2 reporting of healthcare. However, HCA plans to provide the following information to districts, for each employee, in early January each year (starting in 2021) for a district to use to create the W-2:

  • For Box 12-DD, the full amount of the cost of health care
    • The amount provided will correctly reflect the number of months the employee was enrolled (e.g., employee enrolled in coverage for 6 months, amount will reflect 6 months)
  • For Box 12-W, the full amount of any employer contribution (both the monthly amount and the one-time SmartHealth incentive, if the emplo0yee earned it) made to an HSA for an employee in the UMP High-Deductible Plan
    • The information we are not able to provide is the employee contributions to the HSA through payroll deduction.

HCA’s W-2 information would not include anything related to other payroll deductions as district is performing such as employee health insurance premiums for box 14, tobacco and spousal premium surcharges, FSA contributions, and DCAP contributions.

A correction has been made to the W-2 reporting guidance, the amount listed for the SmartHealth incentive was $125. The correct amount for 2020 is $50, which is now reflected in the guidance.

CHIPRA Notice Template

Employers that maintain a group health plan in a State that provides premium assistance under Medicaid or CHIP must notify all employees annually of potential opportunities for premium assistance in the State in which the employee resides.

We were asked if the Health Care Authority (HCA) will distribute the Employer CHIP Notice on behalf of SEBB Organizations. Employers are required to provide the Employer CHIP Notice to all school employees, not just to those school employees who are eligible and enrolled in the employer’s group health plan. Since the HCA does not have information for all of your employees the HCA will not distribute this notice on your behalf.

A model Employer CHIP Notice is available on the EBSA Website at https://dol.gov/agencies/ebsa/laws-and-regulations/laws/chipra. The model notice includes State contact information for States that provide Medicaid or CHIP premium assistance programs. This contact information will be updated periodically; therefore, be sure to check the EBSA Website for the most recent version.

We have also drafted the memo for your use in notifying your school employees they may qualify for health care coverage through the Washington Apple Health (Medicaid) program.

If you need assistance or have questions, you can contact EBSA electronically or call toll free 1-866-444-3272.