Planning for employer shared responsibility payments in 2015

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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.


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