Employers take notice: IRS now acting on ACA employer mandate

The Internal Revenue Service has started enforcing the ACA's employer mandate, also known as employer-shared responsibility provisions, according to The New York Times.

The IRS drafted a letter to send to businesses it deems as owing the federal government money under the employer mandate for 2015. In late October, IRS officials began sending the notices to businesses with at least 100 full-time employees, according to the report.

The employer mandate calls for employers with 50 full-time employees including full-time equivalent employees, to offer "affordable" and "minimum value" health coverage to their full-time employees, or potentially pay the federal government, if at least one full-time employee gets a premium subsidy for individual coverage on the ACA exchanges.

The employer mandate took effect in 2015. However, the IRS has not enforced the provisions until now as it worked on compliance systems, reports NYT.

Overall, the Congressional Budget Office projects the employer mandate will result in penalty payments of $207 billion over the next 10 years, according to the report.

Read the full NYT report here.

 

 

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