Adam Solander Quoted in “Open Enrollment Dominated by Frustration Over Health Care Reform Compliance”Business Insurance October 26, 2014
Adam Solander, Associate in the Health Care and Life Sciences practice, in the Washington, DC, office, was quoted by Business Insurance in “Open Enrollment Dominated by Frustration Over Health Care Reform Compliance.”
Following is an excerpt:
“The reporting requirements under ACA are probably the No. 1 issue that we’re dealing with right now,” said Adam Solander, a Washington-based associate at Epstein Becker & Green P.C.
Starting in January, employers will need to track benefits eligibility of their full-time employees and submit annual reports to the IRS to document their group plans’ compliance with the law. The first reports are due in early 2016 for employers with at least 100 employees. …
Another cost-cutting measure experts say they have warned their clients against includes the continued use of employer payment plans, wherein employers provide cash reimbursements to employees for some or all of the health care premium cost for coverage they purchase in the individual markets.
In September 2013, the IRS declared that employer payment plans are subject to the same requirements as other group health care plans, and cannot be integrated with individual policies to satisfy those requirements.
“That’s something that we’ve come across quite a bit, more than I wish was the case,” Epstein Becker’s Mr. Solander said.
Tax penalties for offering an employer payment plan in lieu of a compliant group health plan can be as high as $36,500 per benefits-eligible employee per year.
“Some companies have been marketing these to smaller employers as a way to get around the ACA, but the IRS is very tuned into this and is ready to enforce it,” he said.