Health Care Reform

Employer Mandate

Overview

Generally, the Patient Protection and Affordable Care Act (PPACA) requires that by Jan. 1, 2015, applicable large employers must decide whether to "pay or play" in the realm of employer-sponsored group health plans.

An employer may be required to pay a penalty for failing to offer a group health plan altogether or for providing coverage that is either unaffordable or not of minimum value. The penalty would be triggered if one of the employer's full-time employees obtained coverage through a health insurance exchange and qualified for a premium tax subsidy.

Alternatively, an employer will not pay a penalty if it decides to "play" by offering affordable, minimum value group health coverage for its employees (and their dependents). PPACA refers to the "pay or play" requirement as "shared responsibility" or the “employer mandate,” and employers need to understand the possible impact on plan designs, contribution strategies and workforce planning.

This section includes information on the employer mandate requirement.

Recent Developments

In February 2014, the IRS issued final regulations on the employer mandate. The regulations clarify that the employer mandate is generally effective Jan. 1, 2015, although there is a possible delayed effective date for employers with 50–99 full-time employees and full-time equivalents and employers with non-calendar-year plans (if certain requirements are met). The regulations provide additional clarifications on the specific requirements under the mandate, as described further on each Web page in this section.

Additional Resources

This material was created by NFP, its subsidiaries, or affiliates for distribution by their Registered Representatives, Investment Advisor Representatives, and/or Agents. This material was created to provide accurate and reliable information on the subjects covered. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation. Neither NFP Securities, Inc. nor NFP Benefits offer legal or tax services.

Securities offered through Registered Representatives of NFP Securities, Inc., a Broker/Dealer and Member FINRA/SIPC. Investment Advisory Services offered through Investment Advisory Representatives of NFP Securities, Inc. a Federally Registered Investment Adviser. NFP Benefits Partners is a division of NFP Insurance Services, Inc., which is a subsidiary of National Financial Partners Corp, the parent company of NFP Securities, Inc. NFP Securities, Inc. is not affiliated with any other entities listed on this document.

Not all of the individuals using this material are registered to offer Securities or Investment Advisory services through NFP Securities, Inc.