Full implementation of healthcare reform under the Affordable
Care Act (ACA) is less than a year away. The most important aspect
of the new system for employers is the "employer shared
responsibility" or "play or pay" requirements. Under
these requirements, "large" employers must offer
"minimum essential" coverage to full-time employees and
their dependents or pay a penalty. Even employers that offer
coverage may pay a penalty if that coverage does not provide
"minimum value" or if it is not
"affordable."
On December 28, 2012, the Internal Revenue Service (IRS)
released its much-anticipated proposed regulations governing the employer
shared responsibility provisions of the ACA. These proposed
regulations address the application of new section 4980H of the
Internal Revenue Code (IRC), which was added by the ACA. The IRS
also has released a set of questions and answers that provide
additional detail on these requirements.
