A Department of Labor decision in November last year declared that employers who do not offer health insurance but instead reimburse employees for the cost of acquiring health insurance have essentially established a “group health plan.” These plans would then be subject to ACA market reforms and be deemed non-compliant because the accounts impose limits on the amount of reimbursement and may not cover all required health benefits. This decision was made retroactive to Jan. 1, 2014. Non-compliance comes with a stiff fee.
Today’s guest is Brenda Procter, associate professor of family finance for University of Missouri Extension. She explains the ruling, the penalty and what employers need to do to avoid a fine.