IRS Releases Proposed and Final Regulations regarding Health Insurance Premium Tax Credits

On January 30, the Internal Revenue Service released proposed and final regulations regarding the health insurance premium tax credit and the requirement that an employer maintain minimum essential coverage under the Affordable Care Act (ACA). The IRS is preparing to release a series of questions and answers to help individuals and entities comply with the new ACA rules.

The final regulations, which are effective for taxable years ending after December 31, 2013, provide guidance related to employees electing to enroll in eligible employer-sponsored coverage and those employees who wish to enroll in qualified health plans established through government-sponsored insurance exchanges. The final regulations also provide guidance on how to claim the premium tax credit associated with enrolling in an exchange.

The proposed regulations provide guidance related to assessing liability for shared responsibility payments if an employer does not maintain minimum essential coverage under the ACA. The proposed regulations address who is liable for providing coverage for covered employees and dependents enrolling in government-sponsored programs, employer-sponsored programs and retiree programs. The IRS has scheduled a public hearing on the proposed rules for May 29.

The Final Rule can be found here.

The Proposed Rule can be found here.


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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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