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.