A number of states have implemented their own insurance mandates intended to continue requiring health insurance coverage and simultaneously stabilize the market. (Photo: Shutterstock)
Lawmakers have been working behind the scenes for the better part of the last three years to make serious modifications to the Affordable Care Act (ACA). Some of what they envisioned has been accomplished. However, much of the original law remains intact nearly a decade after it was signed.
No doubt that ACA compliance continues to be an issue for employers. Given the complex nature of the law, we provide comprehensive assistance to ensure our clients maintain compliance. It is with that in mind that we offer our ACA update for 2020. Below are the most important things you need to know for the coming year.
The individual mandate is gone
You are undoubtedly aware that the Tax Cuts and Jobs Act of 2017 all but eliminated the individual mandate by repealing the penalty for not having qualifying health insurance. The penalty was still applicable through the 2019 tax year. It is no longer. Therefore, expect some of your employees to opt out of enrolling in your health insurance plan.
The mandate ruled unconstitutional
As long as we are talking about the individual mandate, it is important to note that the Fifth Circuit Court of Appeals recently ruled the mandate unconstitutional in a case out of Texas. The ruling left a lot of questions unanswered, not the least of which is whether or not the individual mandate is severable from the rest of the ACA.
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