Tax Bill Repeals Individual Mandate


The Tax Cuts & Jobs Act, signed by President Trump on December 22, 2017, has repealed the Individual Mandate, which is the Affordable Care Act (ACA) requirement that individuals maintain health insurance coverage or face a penalty.

When does the repeal of the individual mandate take effect? The repeal of the individual mandate is effective January 1, 2019. Thus, individuals continue to be responsible for maintaining minimum essential health coverage through the 2018 year or risk facing a penalty.

What does this mean for employers? The ACA Employer Mandate, which requires employers with 50 or more full-time equivalent employees to offer their full-time workers qualifying health coverage - or face stiff penalties, remains in effect.

Additionally, employer's continue to have Reporting Requirements - with 1095 forms required to be distributed to individuals each tax year.

What are risks for employers who disregard the employer mandate or reporting requirements? The IRS is now enforcing the employer mandate, and has begun to send penalty letters to employers for non-compliance for the 2015 filing year (letters for the 2016 filing year are soon to follow)!

Our credentialed ACA team is available to discuss your organization's employer reporting requirements.

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