Affordable Care Act UPDATE by Jerry Pigsley

 
On February 23, the IRS issued Notice 2015-16 and provided guidance on some important issues under the Affordable Care Act (ACA or Obamacare).  The notice is important because this is the first official piece of guidance from the IRS on the 40% excise tax on high-cost health plans.  The notice describes the amount of plan coverage subject to the tax and concludes that it will be based on the coverage employees are enrolled in, not the coverage that is offered.  In addition, the notice states that employee pre-tax contributions to health savings accounts are subject to the tax.  The IRS did request feedback from "stakeholders" on the excise tax issues and there will likely be some change in position as those responses are received.  Prudent employers should check with their accountant and their health insurance agent now in preparation for this excise tax.                                                            By Jerry Pigsley