January 2015 Health Care Reform

January 2015 Health Care Reform

by Posted on: January 21, 2015Categories: HR & Compliance   

With January 2015 upon us, the employer mandate is now in effect for employer groups with more than 100 lives. Another excise tax that can be imposed on any employer (regardless of the employer size) is the 4980D excise tax. This excise tax can be imposed upon any employer that offers a group health plan that fails to comply with a list of ACA mandated coverage requirements. Not only does this excise tax effect all employer groups, the tax itself is onerous. 4980D of the Internal Revenue Code levies an excise tax of $100 per affected individual, per day as long as the employer’s plan is not meeting the list of requirements. In simple terms, this could mean a tax of up to $36,500 per affected individual of any employer. For a group with 25 employer lives, this tax could be $438,000 per year if the problem persisted for the year, for 125 employee lives it could potentially be $4,562,500. As you can see, this tax could have a major impact on any business that is not compliant.


Click here to read the full 2015 Compliance Checklist!




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