Bill Overview
Title: Commonsense Reporting Act of 2022
Description: This bill addresses the eligibility verification process for the premium assistance tax credit and cost-sharing subsidy under the Patient Protection and Affordable Care Act (PPACA). It requires the Department of the Treasury to develop and implement a reporting system that allows employers to voluntarily report information about their health plans for the current plan year prior to the beginning of open enrollment. The bill also allows electronic transmission of employee and enrollee statements and permits Treasury to accept full names and dates of birth in lieu of dependents' and spouses' Social Security account numbers. The bill also allows certain large employers who do not offer their employees minimum health care coverage 90 days to appeal an assessment for not providing such coverage. The Government Accountability Office must evaluate (1) for the period beginning on January 1, 2015, and ending on December 31, 2020, the notification of employers by PPACA exchanges of the eligibility of employees for advance payments of the premium assistance tax credit or cost-sharing subsidies; and (2) for calendar year 2023, the functionality of the prospective reporting system established by this bill, including the accuracy of information collected.
Sponsors: Rep. Thompson, Mike [D-CA-5]
Target Audience
Population: People employed by large employers in the US
Estimated Size: 158000000
- The bill impacts employers who offer health plans, as they will have a new option to report information voluntarily.
- Employees are impacted as their eligibility for the premium assistance tax credit and cost-sharing subsidies is verified through the information employers report.
- Healthcare providers may be indirectly impacted as the bill influences the structure of healthcare coverage and eligibility, affecting service demands.
- The Treasury Department is impacted as it is tasked with developing and implementing a new reporting system.
- Large employers who do not offer minimum health coverage will be impacted by the appeal process allowance for assessments.
Reasoning
- The policy affects large employers and their employees primarily in terms of administrative burden and eligibility verification. It does not directly change the healthcare plans or costs but modifies how data is reported and verified.
- The budget is relatively moderate considering the size of the potentially impacted population, so direct changes in large-scale trends and behaviors are unlikely initially.
- Those employed full-time by large companies, especially those on the margin of eligibility for subsidies, will experience more noticeable impacts.
- Employers who are diligent in reporting may improve the accuracy of their employees' subsidy or tax credit eligibility significantly, leading to potential changes in some employees' financial situation related to healthcare costs.
- The appeal process for large employers might mean that there are delays in changes to coverage impacting employees at companies that do not initially provide adequate health coverage.
Simulated Interviews
HR Manager (Austin, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This policy will help us streamline the reporting process.
- Electronic submissions and using birth dates instead of SSNs will reduce administrative hassle.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Software Engineer (Chicago, IL)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 18/20
Statement of Opinion:
- I don't see a direct impact on me, but better reporting might mean fewer mistakes with my coverage or tax credit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Small Business Owner (Seattle, WA)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- This doesn't really impact me or my employees as we don't fall under these reporting requirements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Manufacturing Worker (Columbus, OH)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- If my employer files reports accurately, my subsidy checks will continue. Errors in reporting have caused issues in the past.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Freelancer (Los Angeles, CA)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- Doesn't affect me directly, but improvements in the system are always welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Accountant (New York, NY)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- Having accurate reporting is crucial because errors in documentation can lead to tax complications for employees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Small Manufacturing Business Owner (Atlanta, GA)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- Any change in administrative requirements raises concerns about compliance and extra workload, even if indirectly affecting us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Healthcare Administrator (Boston, MA)
Age: 46 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- The accuracy of reported data can greatly affect patient coverage verification processes in our facility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 7 |
IT Support Specialist (Houston, TX)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- If my data is report accurately, it should mean less hassle during tax time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired (Miami, FL)
Age: 65 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- As a retiree, this change only affects me indirectly, but accuracy and efficiency in reporting is beneficial for everyone involved.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $30000000 (Low: $20000000, High: $40000000)
Year 3: $30000000 (Low: $20000000, High: $40000000)
Year 5: $30000000 (Low: $20000000, High: $40000000)
Year 10: $15000000 (Low: $10000000, High: $20000000)
Year 100: $1500000 (Low: $1000000, High: $2000000)
Key Considerations
- Employers will need to adapt to a new reporting system, which might require changes in human resources and data management.
- Treasury must establish a robust system to handle increased reporting load electronically and manage data securely.
- The appeal process needs clear guidelines to minimize disputes and ensure fairness.