EMPLOYER ALERT: U.S. SUPREME COURT UPHOLDS THE ACA
June 25, 2015
The United States Supreme Court issued a decision today in King v. Burwell, in which it ruled that IRS subsidies continue to be available in states such as Maine and New Hampshire, where qualifying individuals purchase health insurance coverage through the federal health insurance exchange.
For employers, the ruling means that the ACA's so-called "Pay or Play" penalties will continue to apply in full-force. Thus any employer that is considered to be a "large employer" (generally having 50 or more full-time employees) and that does not offer access to "affordable" health insurance coverage to substantially all of its "full-time" employees will continue to face significant IRS penalties.
While the Play or Pay rules appear to be here to stay, there are a number of techniques employers can use to significantly decrease their potential exposure to these penalties.
We are available to discuss these options with you.