Can employers still pay employees for premiums personal insurance? Yes. Employers pay penalties if they are going about it the wrong way? Yes.
Here's a quick overview of what small business should know about reimburse employees for personal health insurance this year. 
Is Health Insurance Reimbursement still allowed?
Yes. Employers may reimburse employees for personal health insurance - and avoid costly penalties - using a formal repayment plan consistent.
The key here is that the repayment plan meets the market reforms of the Affordable Care Act, and other applicable Federal Regulations (ERISA, HIPAA, IRS, etc.). We'll talk about the coming market reforms.
As an alternative to a repayment plan, employers can also offer employees an allowance (bonus or increase) to use on health insurance, but this must be considered taxable income
Related -.? Individual Health Insurance Can employers reimburse employees in 2015
What are the ACA market reforms?
The Affordable Care Act (ACA) has introduced new "market reforms" applicable to all group health plans, including some medical reimbursement plans. Market reforms require all group health plans:
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Do not place an annual limit or lifetime on essential health benefits (PHS Act 2711), and
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Cover basic preventative care without cost sharing (PHS Act 2713).
repayment plans comply with these market reforms are still able to pay personal health insurance premiums tax-free; nothing in the tax code changed makes this possible.
how the penalties are, and when should they start?
If an employer uses a repayment arrangement which does not comply with market reforms, the employer may be subject to a fee of $ 100 / day per employee excise duty applicable (see IRC section 4980D).
In February, the administration delayed penalties for employer payment schemes not comply arrangements. The sanctions are now beginning 1
July 2015. And remember, it is not only the ACA market reforms. There are other rules and regulations under the IRS, ERISA, HIPAA, and in some cases COBRA. Employers must ensure compliance in these areas and to avoid exposure to additional costs and penalties
Related -. compliance requirements for arrangements redemption premium
So what types of plans are agreed to use?
to summarize the types of repayment plans that generally compliance with the market reforms include:
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Article 105 of the repayment plans health (HRPS)
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stand- alone health reimbursement arrangements (HRA), with one participant
employers who use these types of plans can reimburse health insurance premiums employees and avoid costly penalties.
repayment plans types that generally are not consistent include:
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Stand-alone arrangements health reimbursement (HRA), with two or more participants
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Plans employer payment (an arrangement where an employer reimburses an employee directly for individual policies health insurance or directly pay employees bonuses)
employers who use these types of plans should adopt a consistent arrangement by 30 June 2015 to avoid costly penalties.
you wonder if you reimburse employees correctly now? See this PDF chart to know.
Conclusion
There has been a lot of buzz on penalties repayment of health insurance, and rightly so. From 1 July 2015, employers face penalties of up to $ 100 / day per employee for improper reimbursement arrangement. By adopting a repayment plan or program in accordance taxable allowance, employers can help employees with the cost of their health insurance and avoid costly fees.
What questions do you have about the reimbursement of health insurance and the new sanctions? Leave a comment and we'll help you answer them.
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