Large Employers Face Huge Fines for Not Complying With ObamaCare Rules

A ruling by the Internal Revenue Service threatens to upend various employer-sponsored health plans and ultimately cost employees more for coverage — coverage they often won’t be using. The IRS ruling back in September negates an option that many employers with more than 50 employees were considering: canceling their plans and just reimbursing their employees with funds to go buy their own coverage on the ObamaCare exchanges.

This option, according to the IRS, would cost employers $100 per day for each employee as penalties for exercising what heretofore was not only a reasonable option but an increasingly popular one. The New York Times quoted a tax attorney who clarified that “an employee cannot [any longer] use tax-free contributions from [his] employer to purchase an insurance policy sold in the individual health insurance market, inside or outside an exchange.”

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