Health care benefits – Penalties delayed but still on the way

Description

Abstract: The potential penalties levied by the “play or pay” provisions of the Patient Protection and Affordable Care Act, originally set to take effect next year, have been delayed until Jan. 1, 2015. (This “transition relief” doesn’t change any other aspect of the health care act, though more IRS guidance is expected.) The penalties will apply to large employers that don’t offer affordable health care benefits of at least minimum value to their employees. This article explains how these terms are defined under the act and how to calculate a company’s number of full-time and “full-time equivalent” employees. It also describes the specific nature of the penalties. A sidebar looks at how “play or pay” affects Health Savings Accounts and Health Reimbursement Arrangements.