Question: If a Medical Plan is changed from one that was previously listed in the Medical Plans setup screen in HRM, will the changes be retroactive, or will the change take effect from that day forward?
Answer: Both the old Medical Plan and the new Medical Plan should remain in the HRM Medical Plan setup. Also, both records of coverage given to the employee under the old Medical Plan and new records indicating the date coverage began under the new Medical Plan should be present on the employee’s Health Benefits tab. The old Health Benefit record should no longer be ‘Active,’ and the new record should now be ‘Active.’ If two different Medical Plans were used during the same Calendar Year, then when 1095-C records are compiled, the program will be able to see which Medical Plan (including its associated costs and employee deductions) was assigned to a given employee during each month of the previous year, and it can then determine the correct amounts to enter on Line 15 of the 1095-C. The costs and deductions included in both Medical Plans are also needed when compiling DD amounts for W-2 reporting.