Monday, September 16, 2013

ObamaCare- Employer Penalties

Penalties associated with not offering appropriate coverage (the $2,000 penalty) or not offering affordable coverage (the $3,000 penalty), what can get overlooked is the myriad of "daily" penalties that come with non-compliance. Take the October 1 exchange notice requirement as an example. While the regulations do not identify a specific penalty for failing to comply with the notice requirement, PPACA has a $100 a day general "non-compliance" penalty. This general penalty requires employers to correct compliance failures within 30 days of discovery or self-report a $100 a day penalty for failing to comply on IRS Form 8928 for each day the employer failed to comply with a PPACA mandate. So failing to provide notices can get expensive.

Some other $100-a-day-penalties:

  1. Violating the non-discrimination rules (when they are finally written for insured plans)
  2. Violating the limits restrictions
  3. Failing to extend coverage to dependents to age 26
  4. Having retroactive rescission of benefits
  5. Failing to cover preventative care
  6. Failing to have a revised appeal process (including external appeals)
  7. Failing to provide timely notices
  8. Violating the restrictions on emergency room visits
  9. Violating restrictions on designation of primary care physicians
  10. Improper pre-existing condition exclusions
  11. Having excessive out-of-pocket costs
  12. Violations of the 90-day waiting period limit