On November 6th, the IRS, DOL and HHS issued a joint FAQ clarifying that all payment arrangements by employers for individual health insurance premiums violate ACA regulations.
Agencies Prohibit All Employer Reimbursement of Individual Premiums
In the recent bulletin, the Departments issued FAQ guidance clarifying that all employer arrangements that reimburse employees for individual insurance premiums do not comply with the ACA’s market reforms and may trigger penalties. This guidance essentially prohibits all employer reimbursement for individual premiums, whether employers treat the money as pre-tax or post-tax for employees. This Health Care Reform Bulletin provides an overview of the Departments’ guidance.
