“For my part, I know nothing with any certainty.”
– Vincent Van Gogh
The Tax Cuts and Jobs Act that was passed by both houses of Congress last year is one of the most talked about and misunderstood bills in a time where misinformation in public policy is at one of its all-time highs. One of the key provisions in the bill is that the Patient Protection and Affordable Care Act’s individual mandate, a provision requiring everyone without a hardship exemption to purchase health insurance, will no longer be law. This is viewed as a “win” for small and big businesses alike but the reality is a little more complicated than that.
First, the tax penalty for not having health insurance does not go into effect until 2019. That means that individuals will still be fined if they do not have medical coverage today and, as a reminder, that fine is $695 per adult or 2.5% of household income (whichever is greater). More important to businesses though, is that there are an estimated 3+ million employees, mostly younger and healthier, who opt for employer offered medical plans in order to avoid the penalty. This means that smart businesses will structure their medical benefits for both 2018 and 2019 to account for this change in employee demand.
For additional information on the Tax Cuts and Jobs Act or to structure your company’s insurance to best take advantage of changing regulations, contact BenefitCorp at (800) 577-4996.