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Cost of Moving Employees to the Exchange

The IRS’s recent guidance around the inability for employers to provide pre-tax incentives for employees to purchase health coverage individually on the Exchange prompted this article on NPR.

The most important statement in this article is that while small employers will not be required to provide health coverage (or pay a penalty), they compete for employees against employers who will be required (or pay a penalty). Benefits remain a key component of most employer’s total rewards strategy. For those employers whose strategy is to pay employees to go to the Exchange, this latest guidance confirms that the incentive better be after tax.

NPR, Can Employers Dump Workers On Health Exchanges? Yes, For A Price - http://n.pr/1jwM7Q7

Posted on May 29, 2014 by Ben Cohen, CEBS, Practice Leader, Health and Welfare Benefits

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