Beginning July 1, 2015, the IRS will begin penalizing employers who reimburse their employees’ purchase of individual health insurance policies. If an employer continues to reimburse employees for purchasing health insurance on their own, that practice could garner penalties of $100 per employee per day, up to $500,000. The IRS, through sub-regulatory guidance, stated that this type of reimbursement violates the Obamacare annual cap on health insurance benefits.
This regulatory decision significantly decreases employers’ ability to assist employees with health insurance costs. NFIB is fighting to protect business owners from these catastrophic penalties and is working to reinstate flexibility in benefit offerings. If your business would be negatively impacted by this prohibition and the associated penalties, please share your story with us now.