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ACA Compliance Bulletin: Impact of Individual Coverage on the ACA's Pay or Play Rules

Federal agencies have proposed a rule to expand the usability of Health Reimbursement Accounts (HRAs). As a result, the Internal Revenue Service (IRS) issued Notice 2018-88 to begin developing guidance on the impact of the new rule on various federal requirements. The aforementioned federal requirements are the Section 4980H employer shared-responsibility rules under the Affordable Care Act (ACA), also known as the employer mandate or pay to play rules, and the nondiscrimination requirements in Internal Revenue Code Section 105(h). This “ACA Compliance Bulletin” provides background on the proposed rule, along with summaries of the federal requirements and how Notice 2018-88 proposes to apply the rule to them. You may not rely on any guidance provided in Notice 2018-88. If adopted, the proposals in the notice would not take effect until January 1, 2020.

Contact your Cowden representative for more information on this or other compliance issues.

Read ACA Compliance Bulletin here