Skip to content

Surprise announcement by DOL affects small business health care planning

November 13, 2014

I didn’t see this one coming either:

A small business employer who gives an employee money to help pay for the cost of Obamacare under any circumstances is considered to have set up an illegal group benefit plan that may trigger penalties under the Affordable Care Act. The warning is titled “FAQs about Affordable Care Act Implementation (Part XXII).
That’s the extreme out-take of this recent (November 6, 2014) warning by the U.S. Department of Labor. I wrote about it here: http://tonynovak.wordpress.com/2014/11/13/dol-warns-employers-do-not-reimburse-individual-health-insurance/.

One Comment
  1. For clarification: my earlier advice on after-tax contributions to employee health insurance was based on http://www.irs.gov/uac/Newsroom/Employer-Health-Care-Arrangements that appears to exempt (allow) the arrangement but the 11/6/2014 announcements seem to directly contradict this allowance. Given the severity of the penalties, it makes sense to err on the side of caution untill we have further clarification.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: