Relief for Small Employers Reimbursing Individual Policies - 031915R

An employer cannot offer employees cash to reimburse the purchase of an individual policy, whether or not the employer
treats the money as pre-tax or post-tax to the employee. Such arrangements (called “employer payment plans”) are
subject to the market reform provisions of the Affordable Care Act (“ACA”), including prohibition on annual limits and the
requirement to provide certain preventive services without cost sharing with which it cannot comply. These arrangements
may be subject to a $100/day excise tax per applicable employee (which is $36,500 per year, per employee).