EBIA Weekly Newsletter

IRS Releases Proposed Regulations on Premium Tax Credit and Individual Shared Responsibility

   July 7, 2016

Premium Tax Credit NPRM VI, 26 CFR Parts 1 and 301, 81 Fed. Reg. _______ (July 8, 2016)

Available at https://federalregister.gov/a/2016-15940

As we went to press with this week’s EBIA Weekly, the IRS issued proposed regulations relating to the premium tax credit and individual shared responsibility (“individual mandate”), which are scheduled for publication in the Federal Register on July 8. Among other issues, the proposed regulations address the implications for affordability of employer-sponsored coverage when the employer offers payments to employees who opt out of coverage. Although employers would not be directly affected by the proposed regulations, applicable large employers could be indirectly affected through the proposed regulations’ impact on the employer shared responsibility requirements.

We will cover this development in next week’s EBIA Weekly. Meanwhile, for more information, see EBIA’s Health Care Reform manual at Sections XXI (“Exchanges, Qualified Health Plans (QHPs), and CO-OPs”), XXVIII (“Shared Responsibility for Employers (Play or Pay Penalty Tax)”), and XXIX (“Shared Responsibility for Individuals (Individual Mandate)”).

Contributing Editors: EBIA Staff.