What the ACA decision means to employers

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What the ACA decision means to employers

The U.S. Supreme Court preserved key provisions of President Obama’s Affordable Care Act (ACA), maintaining insurance subsidies despite a stiff challenge from opponents. By a 6 to 3 vote, the Court ruled that health insurance subsidies are available to all qualifying individuals buying coverage in the public exchanges regardless of whether the exchange is established by a state or run by the federal government. The decision will have very little practical impact for employers who provide adequate and affordable coverage to their full-time employees in compliance with the ACA shared responsibility mandate. For those large employers that were hoping for a last minute reprieve from the ACA penalties, the Supreme Court’s decision means they will need to reevaluate whether to offer coverage. In addition, if not previously undertaken, we suggest that employers should review their group health plan benefits to ensure the coverage is being offered in compliance with the ACA now that the penalties appear here to stay. Fisher & Phillips LLP

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