The opinions expressed by columnists are their own and do not represent our advertisers

Wednesday, May 28, 2014

I.R.S. Bars Employers From Dumping Workers Into Health Exchanges

WASHINGTON — 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. Such arrangements do not satisfy the health care law, the administration said, and employers may be subject to a tax penalty of $100 a day — or $36,500 a year — for each employee who goes into the individual marketplace.

The ruling this month, by the Internal Revenue Service, blocks any wholesale move by employers to dump employees into the exchanges.

Under a central provision of the health care law, larger employers are required to offer health coverage to full-time workers, or else the employers may be subject to penalties.

Many employers — some that now offer coverage and some that do not — had concluded that it would be cheaper to provide each employee with a lump sum of money to buy insurance on an exchange, instead of providing coverage directly.

But the Obama administration raised objections, contained in an authoritativequestion-and-answer document released by the Internal Revenue Service, in consultation with other agencies.



Anonymous said...

Another brilliant move by the administration hurt smaller businesses... They continue to make up the rules as they go.. enough is enough.

Anonymous said...

Poor policy, poor execution, poor result.
What was the keynote social program of the Obama administration is an utter failure. It will continue if another Democrat is put in the White House.

Anonymous said...

All employers have to do is pick high deductible or high premium policies and their employees will go to obammie care on their own.
It is already happening.

Anonymous said...

I was actually told recently by my employer's insurance agent that group coverage is more expensive than individual coverage. So it would make sense for the small business owners that are allowed (less than 50 employees) to let employees shop for and choose their own plan.