ACA Reporting
ACA Compliance Lessons Learned From Recent Reporting Seasons
Common themes emerge when reflecting on recent ACA reporting seasons that can help employers reduce administrative burdens and improve accuracy.
Employers
Question of the Week - Opt-Out Payment and Proof of Other Coverage
Q.- Why should employers who provide a cash payment to employees who decline medical coverage get proof that the employee has coverage elsewhere?
Q.- Why should employers who provide a cash payment to employees who decline medical coverage get proof that the employee has coverage elsewhere?
A.- Employees should be asked to show proof of other health coverage when opting out of employer insurance primarily ACA compliance, allowing the employer to exclude cash opt-out payments from their plan’s affordability calculation. This helps avoid potential penalties and ensures the remaining offered coverage is considered truly affordable for the employee. Without proof, the employer must count the cash incentive as part of the employee’s premium cost, potentially making their offered plan unaffordable under ACA rules.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 integrates with major insurance carriers for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and others), and with leading payroll platforms for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and others).
This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
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