This seems to be a trend. ACA amendments with some bipartisan support can get done if they are buried in unrelated legislation.
When the President signed H.R. 3236, the ACA employer mandate was amended to promote small employer hiring of armed forces members, retroactive to January 1, 2014. Here’s how, quoting the statute.
SEC. 4007. AMENDMENTS TO INTERNAL REVENUE CODE WITH RESPECT TO HEALTH COVERAGE OF VETERANS.
(a) EXEMPTION IN DETERMINATION OF EMPLOYER HEALTH INSURANCE MANDATE.—
(1) IN GENERAL.—Section 4980H(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
‘‘(F) EXEMPTION FOR HEALTH COVERAGE UNDER TRICARE OR THE VETERANS ADMINISTRATION.—Solely for purposes of determining whether an employer is an applicable large employer under this paragraph for any month, an individual shall not be taken into account as an employee for such month if such individual has medical coverage for such month under—
‘‘(i) chapter 55 of title 10, United States Code, including coverage under the TRICARE program, or
‘‘(ii) under a health care program under chapter 17 or 18 of title 38, United States Code, as determined by the Secretary of Veterans Affairs, in coordination with the Secretary of Health and Human Services and the Secretary.’’
This seems to say that an employer just barely an Applicable Large Employer, based on 2014 employment, may subtract those with the military coverage described here, so as to avoid the 2015 employer mandate. That raises three questions.
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Does the employer also get relief from Code § 6056 Applicable Large Employer coverage offer reporting? Section 6056 takes its ALE definition from §4980H. Or, is this relief good only for § 4980H taxation purposes?
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If this does not free the employer from § 6056 reporting requirements, then it’s not really relief, because by doing the reporting, the employer could have qualified for the 2015 employer mandate transition relief for employers of 50 to 99 full-time employees.
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Does this also mean that an employer just a bit too large for the 2015 transitional relief for employers of 50 to 99 full-time employees may subtract those with the military coverage described here, so as to qualify for that transition relief?
Realizing that we might not like getting what we wish for, we would like to see IRS guidance on these questions.
