New guidance from the IRS suggests that the only way for employers to pay for employees?Ãà individual health insurance policies is to pay for such coverage on an after-tax basis. ?áHealth reimbursement arrangements and employer arrangements that pay or reimburse premiums on a pre-tax basis, which cover individuals who are not enrolled in group health plans, are no longer permissible under the Affordable Care Act.?á Employers may forward post-tax employee deductions to a health insurance issuer without establishing a group health plan.
IRS Notice 2013-54 can be found here.
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Employers Unable to Pay for Individual Policies on a Pre-Tax Basis
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