Guidance on Employer Penalties Under the ACA

PricewaterhouseCoopers just released a guidance report on employer penalties under the Affordable Care Act, and it’s definitely worth a read, especially for HR leaders with questions on how the coming healthcare reform will affect their organization and its workers. From the report:

Under the Affordable Care Act (ACA), employers face
significant penalties (sometimes called the ‘pay or play’ provisions) if they fail to offer healthcare coverage to their full-time employees or if the coverage offered is not affordable. The IRS recently issued proposed regulationson the employer-shared responsibility penalties and followed this by posting FAQs on their website. The proposed regulations incorporate and expand upon some of the guidance previously provided in IRS Notices.

Questions (and their appropriate answers) include:

*  What penalties are imposed on employers that don’t provide health coverage?

* How does an employee qualify to obtain subsidized coverage from an exchange?

* Must employers offer family coverage?

* What employers are potentially liable for penalties?

* How is it determined whether the coverage is affordable?

* How are the penalties applied and assessed?

The full report can be found here.

Also, see Managing Editor Kristen B. Frasch’s recent post on “Some Important Healthcare Calculations” courtesy of SHRM, for additional information on how penalty liabilities are determined and assessed.