Alert! Employers Can’t Reimburse Employees for Individual Premiums

DOL, IRS and HHS have released FAQs about Affordable Care Act (”ACA”) Implementation XXII (“FAQs XXII”). FAQ XXII provides additional guidance to employers on the reimbursement of employees’ individual health insurance premiums. FAQ XXII makes it clear that the Agencies believe that ACA’s market reforms prevent any arrangement pursuant to which an employer provides cash reimbursements to employees for the purchase of an individual market policy, regardless of whether the reimbursement is paid on a pre- or after-tax basis.


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