Employer Move Blocked

Employers thinking of dropping health insurance and sending employees to the exchange

might want to reconsider.

Such arrangements do not satisfy the health care law, the administration said, and employers may be subject to a tax penalty of $100 a day — or $36,500 a year — for each employee who goes into the individual marketplace.

New York Times

Ouch!

First the gummint says you MUST buy health insurance, now they block you from buying it on the exchange.

Aren't there laws against this?

Many employers — some that now offer coverage and some that do not — had concluded that it would be cheaper to provide each employee with a lump sum of money to buy insurance on an exchange, instead of providing coverage directly.

Nice idea, but don't forget to factor in the $36k penalty.

“For decades,” Mr. Biebl said, “employers have been assisting employees by reimbursing them for health insurance premiums and out-of-pocket costs. The new federal ruling eliminates many of those arrangements by imposing an unusually punitive penalty.”

No kidding.

Wonder what other surprises are in store?