CERCA: Healthcare Working Group

1. CERCA:Healthcare Working Group Fall Meeting October 12, 2011

2. The Patient Protection and Affordable Care Act (ACA) calls for the IRS to implement and administer a large number of provisions • ACA established the need for most legal residents of the United States to obtain health insurance. • Implementation will impact critical IRS systems including: • Submissions processing, account management, document matching, notice generation, and multiple compliance programs. • Establishment of significant new processes • Development of new technology solutions • The ACA will also have a significant impact on external stakeholders: • Tax preparers • Taxpayers • Software developers • Education providers Healthcare Working Group:Background

3. Facilitates information sharing between CERCA members and the IRS • Address primarily from an IRS perspective, while considering inter-agency interoperability (e.g., HHS, SSA, and States), and other stakeholders • HCWG will support IRS to meet their objectives to efficiently implement and administer ACA knowing it will have a significant impact on electronic tax administration Healthcare Working Group:Purpose

4. Gather, analyze and understand available information on IRS implementation • Analyze IRS progress and determine its impact on the tax ecosystem. • Facilitate dissemination of information via CERCA channels • Work with IRS officials on ACA topics, proposed by HCWG members or the IRS • Act as a sounding board for the IRS • Provide feedback to the IRS, as appropriate Healthcare Working Group:How we will Operate

5. Stakeholder Analysis (Roles, Risks, Impacts) • Interagency Dependencies • Development of Technology Infrastructure • Defining Standards • Security & Privacy in ACA Implementations • Tax Gap, Threats and Implications • Complexity of Compliance • Ownership by the taxpayers • Fraud, Threats and Prevention • Consistent Interfaces Healthcare Working Group:Identified Areas of Possible Focus

6. Charter approved by the CERCA Board in March of 2011 • Originally chaired by Jerry Anderson of CSC • Has met four times in DC since the beginning of 2011 • Lauretta Brown of Capgemini, and Kerri Gibson of CCH, have been appointed as co-chairs of the CERCA Health Care Healthcare Working Group:Progress

7. IRS ACA leadership participated in the August 2011 Meeting • Confirmed Charter and Goals of HCWG • They are looking for our assistance • They still have many unanswered questions • They will seek our input on specific topics • IRS ACA leadership met with CERCA Board and HCWG co-chairs at the September 2011 board meeting to specifically address the Small Business Health Care Tax Credit • Finalizing Stakeholder Analysis Healthcare Working Group:Highlights of Progress

8. The reaching impact of ACA is very broad; the HCWG has identified the following key stakeholder categories that by focusing on we can provide value to the industry and the IRS • IRS • Tax preparers • Taxpayers • Software developers • Education providers Key Stakeholders

9. Short-term needs Long-term needs IRS Key Stakeholders:IRS

10. Short-term needs Long-term needs Tax preparers Key Stakeholders:Tax preparers

11. Short-term needs Long-term needs Taxpayers Key Stakeholders:Taxpayers

12. Short-term needs Long-term needs Software Developers Key Stakeholders:Software Developers

13. Short-term needs Long-term needs Education Providers Key Stakeholders:Education providers

14. Information: Create one go-to destination • Education: Provide multiple channels of education to reach different stakeholders • Tools: Create calculators (FTE, estimator calculators) Healthcare Working Group:Proposed Solutions