GASB Seeks Comment on Medicare Part D Technical Bulletin

The Governmental Accounting Standards Board (GASB), in February, published a proposed staff Technical Bulletin intended to clarify the proper reporting of payments that an employer, or defined benefit other postemployment benefit (OPEB) plan, receives from the federal government under Medicare Part D. Comments on the proposed Technical Bulletin may be submitted through April 17, 2006.


Easy & Profitable Client Payroll with PayCycle

Now is a great time to get clients set up for payroll. We’d like to invite you to a FREE 60-minute web seminar sponsored by PayCycle, the leader in on-demand payroll. During this informative session, you’ll discover how to:

  1. Automate payroll tasks from paychecks to W-2’s
  2. Save time with electronic tax payments and filings
  3. Increase year-round firm profitability without adding staff or infrastructure

Come see for yourself how easy and profitable payroll can be - CLICK HERE TO REGISTER Hurry! Spaces are limited and the sessions fill up quickly.

All PayCycle webinar attendees will receive 1 month free on PayCycle’s service. After the free period, PayCycle costs just $14.99 per client per month for the first 5 employees. Each additional employee is just $0.25 per month. This low monthly fee includes everything you need to process payroll, including a firm-branded website for clients, direct deposit, electronic tax payments and filings, seamless integration with QuickBooks, ATX, CCH and other leading accounting software, free customer support with payroll experts, customized marketing resources to solicit your payroll service to clients, and much more.

Learn More Register for a Web Seminar Sign Up Now

“Since the provisions of Medicare Part D became effective on January 1, 2006, a number of questions have arisen regarding the proper accounting for these transaction,” said Karl Johnson, project manager. “Through this proposed Technical Bulletin, we are providing guidance on how best to apply existing accounting standards and to report these new federal payments in state and local government financial statements.”

Medicare Part D is the new federal program that provides prescription drug benefits to eligible Medicare recipients. The law that created the program provides for payments to certain employees who provide prescription drug benefits to persons who otherwise would be eligible to participate in Medicare Part D; the payments can be as much as 28 percent of certain eligible costs.

The Technical Bulletin looks at four specific questions:

  1. How should an employer account for and report a Medicare Part D payment from the federal government to the employer?

  2. How does a Medicare Part D payment from the federal government to an employer affect the accounting for the transaction and financial reporting by a defined benefit OPEB plan?

  3. How should an employer account for and report a Medicare Part D payment from the federal government to the plan?

  4. How should a defined benefit OPEB plan account for and report a Medicare Part D payment from the federal government to the plan?

Comments can be submitted electronically to or by regular mail to
Director of Research
Governmental Accounting Standards Board
401 Merritt 7
PO Box 5116
Norwalk, CT 06856-5116

You may like these other stories...

Read more by Rita Keller here.I recently read a tweet by my music-teacher son regarding his fifth-grade musicians: “My fifth-grade flutes and clarinets just exhaust me. They have so much energy and ask sooooo many...
By Richard D. Alaniz  On June 24, 2013, the US Supreme Court narrowed the definition of who qualifies as a "supervisor" for the purposes of harassment cases. This holding is a significant win for...
By Ken Berry The common perception is that most of the key provisions included in the massive 2010 health care legislation – the Patient Protection and Affordable Care Act (PPACA), frequently referred to as...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.