With all of the Patient Protection and Affordable Care Act (PPACA) regulations, the last thing employers want to do is worry about requirements that don’t apply. One particular regulation that doesn’t necessarily concern employers is the individual responsibility requirement (also know as the individual mandate).
And although the employer shared responsibility requirements have been delayed to 2015, the individual responsibility requirement is still scheduled to take effect in 2014. Under the individual mandate, most people residing in the U.S. will be required to have minimum essential coverage, or they will have to pay a penalty. Many individuals will be eligible for financial assistance, through premium tax credits (also known as premium subsidies), to help them purchase coverage if they buy coverage through the health insurance marketplace (also known as the exchange).
Employers are not required to educate their employees about their individual responsibilities under PPACA, but providing information on this component of the law is just another way to help your employees understand all facets of health care reform.
United Benefit Advisors has developed a summary of individual mandate requirements that employers may find useful. The summary includes:
- General information on the individual responsibility requirement;
- Eligibility requirements for premium subsidies; and
- Penalty exemptions.
To view this summary, click here.