8, 2016, the Internal Revenue Service (IRS) issued
proposed regulations on the Affordable Care Act’s
(ACA) premium tax credit and individual mandate. The
regulations also impact employers through the
employer shared responsibility rules.
proposed regulations focus primarily on the effect of
opt-out payments on the affordability
of employer-sponsored coverage:
payments made under an unconditional
opt-out arrangement will increase an employee’s
required contribution; and
payments made under a conditional opt-out
arrangement are disregarded in determining the
rules will apply to opt-out arrangements beginning on
December 31, 2016, unless the arrangement was
adopted after December 16, 2015.