Last November, Melissa Ostrower wrote an excellent blog on the perils of employers reimbursing employees for health care premiums. (See: http://www.benefitslawadvisor.com/2014/11/articles/health-care-reform-legislation/premium-reimbursement-arrangements-employers-beware/) At the time of her article, the Department of Labor had just published a new FAQ which stated, in general, that where an employer provides cash reimbursements to employees for the purchase of an individual market health care policy or provides cash in lieu of coverage to employees with high claims risks, such action would be considered part of a plan, fund or arrangement governed by the Affordable Care Act (βACAβ). Because these arrangements β by their nature β can never comply with the ACA group health plan provisions, they may subject employers providing such arrangements to penalties.
Home > Federal Law Articles > Employee Benefits > General (Benefits) > Premium Reimbursement Arrangements β Part Deux