Beware: There is such a thing as being too clever by half, when it comes to enforcing the group health mandates of the Affordable Care Act (ACA). The IRS and its sister agencies have been putting out fires caused by promoters who claim compliance with the law through a hyper-technical reading of its provisions. Here’s the latest.
No, you really, really, really can’t do that. The IRS has had a doozy of a time trying to convince employers that they can’t establish health reimbursement accounts (HRAs), the purpose of which is to cover premiums for employees who buy individual health polices on the individual exchanges. Apparently, the eye-catching $365,000 in self-assessed excise taxes, which appeared in an IRS FAQ, wasn’t enough. A new set of FAQs, released jointly by the IRS and the Departments of Labor (DOL) and Health and Human Services (HHS), makes these additional points:
• Employers’ after-tax cash reimbursements of empl...(register to read more)