…again. The claimed purpose of Obamacare is to get every American covered by a health plan.
Prior to the passage of the Affordable Care Act, with its mandate that all Americans purchase insurance and requirement for businesses to offer employees insurance plans, many small companies provided coverage by directly reimbursing medical costs or for the cost of private insurance plans. Businesses do it because that’s a less complicated process than dealing with an official health insurance plan….
An IRS Rule (remember these guys and their rules?) that took effect on 1 Jul punishes those businesses for helping their employees.
…those reimbursements…are “considered to be group health plans subject to the market reforms, including the prohibition on annual limits for essential health benefits and the requirement to provide certain preventive care without cost sharing.”
“Such an arrangement fails to satisfy the market reforms and may be subject to a $100/day excise tax per applicable employee (which is $36,500 per year, per employee) under section 4980D of the Internal Revenue Code[.]
No. The true purpose of Obamacare is to get every American covered by a government-approved health plan. Choice be damned. An employer actually helping his employees be damned.