IRS Notice Provides Additional Guidance on the Application of the ACA to Employer-Provided Health Coverage

On December 16, 2015, the Internal Revenue Service released Notice 2015-87 (the ?Ç£Notice?Ç¥), which provides guidance related to the application of market reform provisions of the Affordable Care Act (the ?Ç£ACA?Ç¥) to health reimbursement arrangements (?Ç£HRAs?Ç¥) and other types of employer-provided health coverage, primarily addressing questions concerning the reimbursement of premiums for individually purchased health insurance policies. The Notice also clarifies how HRA contributions, flex credits and opt-out payments may impact certain determinations under the employer shared responsibility provisions of the ACA (i.e., the ?Ç£play or pay?Ç¥ rules). Furthermore, the Notice provides guidance regarding (1) the application of COBRA continuation coverage rules to unused amounts in health flexible spending accounts for employers that adopted the carryover provisions permitted under IRS Notice 2013-71, and (2) penalty relief for employers that make good faith efforts to comply with ACA reporting requirements. A copy of the Notice is available?áhere.