Planning for employer shared responsibility payments in 2015

Leave a comment

October 2, 2014 by Tony Novak

It strikes me as odd that after decades of acting as a term proponent of health care reform, I would be employed advising employers how to avoid one of the core reforms that requires large employers to provide health insurance or pay a tax penalty. Yet my new article today titled Five Strategies to Avoid Shared Responsibility Payments under the Affordable Care Act does exactly that.

There are actually several reasons to support this strategy. First, lower income employees come out way ahead when employers do not offer qualified coverage. Of course, the opposite is true for higher income employees.

Second, I still strongly believe that the most efficient approach in many firms is for the employer to provide supplemental health insurance and allow employees to buy their own primary coverage. If we consider how much out-of-pocket costs have risen for employees under Obamacare, this actually makes more sense for employees. Additionally, it results in far less administrative hassle for the employer.

 

Leave a Reply

Please log in using one of these methods to post your comment:

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: