Tag Archives: Pay or Play Penalties

Employers Dilemma- Early Renewal or Not?

A follow-up to this story was published in October can be be read here. Many insurance brokers (and insurers) are suggesting that Employers re-date the plan anniversary (aka “Early Renewal”) to delay certain aspects of Obamacare Affordable Care Act rules and possible penalties (see our related story). Is this a good idea?  Are there pros and cons to using a “plan anniversary date change” strategy?

At Coverage California, we present alternative points of view. The following article came from Benecomplink.com, which argues that merely changing the renewal date of the insurance policy, does not necessarily change the plan anniversary date under ERISA:

“Changing the renewal date on an insurance policy with the plan’s carrier does not change the plan year. Changing a renewal date to December may be allowed by the insurance company, but if the plan sponsor/employer does not change the plan year, their plan year may continue to be a calendar year. From a legal perspective, “plan year” is the year designated in the plan document. Plan years are set by board resolutions and reinforced by plan documents and the filing of 5500 forms.. ” [Full article available at Benecomplink]


Employer Plan administrators should seek professional advice from their advisors.  For a limited time, we offer a limited number of free Q&A sessions.  For details, refer to the Eventbrite invitation at this link::  Reserve Q&A time.


ObamaCare Delay Is No Big Deal To Many Employers

In California, the ObamaCare 12 month delay is really a 1 month delay for many employers who were gaming the system.

News reports of the Administration’s July 2nd announcement are overlooking the fact that while implementing ObamaCare in California, knowledgeable insurance brokers have been helping employers take advantage of loopholes in the transitional relief part of ObamaCare regulations that effectively delayed  Pay or Play Affordable Care Act penalties for almost a year.

Mandatory reporting will not apply for 2014.  “Any employer shared responsibility payments (under section 4980H) will not apply until 2015.” 

Administration’s Press Release:  http://www.treasury.gov/connect/blog/Pages/Continuing-to-Implement-the-ACA-in-a-Careful-Thoughtful-Manner-.aspx

What could be a big deal, however, are updated proposed rules for these provisions that will be published later this summer.  Subscribe to this page for updates.