In an article that appeared this past Sunday in the New York Times, there is a May 2014 IRS ruling that “blocks any move by employers to dump employees into the (healthcare marketplace) exchanges.”
According to the article, “many employers had thought they could shift health costs to the government by sending their employees to a health insurance exchange with a tax-free contribution of cash to help pay premiums, but the Obama administration has squelched the idea in a new ruling.”
Some employers have decided or assumed that it may be cheaper to just give their employees money to buy insurance on the Healthcare Marketplace than to provide their employees with health insurance. Under this new ruling, employees who try to dump their employees on the marketplace may be subject to a $100 per day per employee penalty (a fine totaling $36,500 per year per employee).
As businesses struggle with how to individually prepare for the “Affordable Care Act” and its ever-changing deadlines and provisions, this will be another important element to consider. If you want more information please see the attached article, or contact me at email@example.com.