December 15, 2014
Beginning in plan year 2015, Blue Cross Blue Shield of Arizona (BCBSAZ) will no longer be able to renew groups that do not have at least 1 enrolled common law employee when the business is wholly owned by an Individual or by the Individual and his or her spouse; in order for a Sole Proprietor group to renew their group health plan with BCBSAZ they must enroll at least 1 common law employee. (more…)
September 10, 2014
Th
e Employers Council on Flexible Compensation (ECFC) recently reiterated and clarified the IRS stance on individual medical plans for employees:
Employers that pay for or reimburse the premiums of individual medical plans for its employees on a pre-tax basis are in violation of IRS regulation. Any benefit administrator who claims otherwise is subjecting their clients to an excise tax of $100 a day per covered employee, or $36,500 a year. The ECFC issued this release so as to warn employers not to violate regulation, and to dissuade any benefit administrators from marketing any such arrangements that violate IRS regulation.
If you know anyone that is still reimbursing their employees’ individual medical plans on a pre-tax basis, notifying them about this penalty. It could save them a great deal of trouble. Or have them call us at (520) 721-4848 and we can help.