ACA Penalties for Failure to Provide or Have Coverage Are Still Around

finance business calculation with calculator and pen on chart

There is a lot of confusion out there concerning ACA penalties. The 2018 tax act did not eliminate any employer penalties for not offering health insurance coverage. The only change was reducing the individual coverage penalty to zero – however, this change does not go into effect until 1/1/2019. Applicable large employers (ALEs) with more… [Read More]

ACA Penalties Are About to Hit Employers

ACA Penalties Are About to Hit Employers

Reach way back into your memory bank to the time when your broker presented you with a “pay or play” analysis to determine whether you comply with the employer mandate under the Affordable Care Act. There was the $2,000 penalty which applies to every full-time employee in the event there was no valid offer of… [Read More]

As Enforcement Increases, So Will Dissatisfaction with the Affordable Care Act

Money coming out of jar

The Affordable Care Act offers generous subsidies to applicants whose income is less than 400% of the federal poverty level. There are a few ways the subsidy can be modified: if an individual’s income varies from what was originally reported on the application or if they are in some manner disqualified from receiving a subsidy…. [Read More]

Affordability: The IRS Speaks Again


It was just beginning to catch on that employee contributions can be no more than 9.5% of earnings. This week the IRS announced that, due to inflation indexing for 2015, this is now 9.56% of earnings for single coverage. As we get closer to the delayed first employer shared- responsibility mandate (over 100 FTEs)—effective January… [Read More]

Exemptions Pile Up: A Toothless Mandate


Central to the guaranteed issue provision of the Affordable Care Act is the requirement that every American carry health insurance.  This, in theory, would avoid anti-selection.  Without the fear of not being able to get coverage if they need it, why would healthy Americans purchase insurance when they can get it, without exclusions, at the… [Read More]

Employers Aggressively Pursuing “Skinny” Plans to Meet ACA Requirement


Designing “skinny plans” will get high marks for creativity. These “skinny plans” or “MEC plans” cater to a liberal interpretation of meeting ACA’s Minimum Essential Coverage requirement, leading employers, particularly with large hourly workforces, to aggressively pursue them. Skinny plans cover the ACA’s required essential preventive care services, comprising 15 covered preventive services for adults (22 for women, including pregnant women) and 26 for… [Read More]

Employers: Prepare to Address the ACA Penalty


With the launch of the much-anticipated state exchanges October 1, there has been widespread coverage of the glitches and frustrations that accompanied their start. While employers are focused on compliance with the new law and all of the regulations, they should pay attention to a longer-term issue that will undoubtedly arise. I am thinking about… [Read More]

Hard Decisions Coming in 2014: Play or Pay?


All signs are that while waiting for HHS clarity on PPACA rules, it is unlikely employers will discontinue providing health coverage. Why? Because they don’t know the adverse impact that discontinuing coverage might have on their ability to attract and retain employees in an improving marketplace. Besides, penalties for not providing coverage are not deductible…. [Read More]