Health plan opt out options are being considered – new IRS regulations forthcoming

Some orga­ni­za­tions let employ­ees opt out of their med­ical plan elec­tion, in return for which they are giv­en some tax­able com­pen­sa­tion.  The prob­lem is that if employ­ees are not par­tic­i­pat­ing in the plan, there may be a penal­ty for non-com­pli­ance with the ACA.  Now the gov­ern­ment has made it sim­ple – or at least clar­i­fied appro­pri­ate opt outs.  If it is CONDITIONAL – which means an employ­ee may only opt out and receive cash if the employ­er makes the pay­ment con­di­tion­al upon proof of hav­ing oth­er group cov­er­age (with annu­al update) then it will pass muster.  IF, how­ev­er, it does not have any con­di­tions placed upon it…you have a problem.