The University of Missouri will stop providing subsidies to itsgraduate students to help them buy health insurance due to an IRSrule linked to the Patient Protection and Affordable CareAct.

While the PPACA levies a $2000-per-employee fine on largeemployers who do not provide health insurance for workers, a recentIRS interpretation of the legislation determined that employers aresubject to even greater fines if theyoffer cash to employees in lieu of insurance. Those employers canbe fined $100 a day—or up to $36,500 a year.

Facing the prospect of such heavy fines, the university willstop helping students pay for health care.Instead, it will direct the money towards fellowships to help gradstudents pay for tuition, books, housing and otherexpenses.

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