Resolving the Question about Federal Employees, I Think
We previously asked whether federal employees could enter the (ObamaCare) exchanges and get tax subsidized contributions from their employer at the same time. Timothy Jost, at the Health Affairs blog, seems to have an answer. According to this Department of Labor notice, employers must notify new employees, as well as current employees no later than March 1, 2013:
- Of the existence of the marketplace, the services it offers, and how employees can contact it;
- That if the employer’s share of total allowed costs of benefit provided by the benefits plan is less that 60 percent of total costs (that is, it does not meet minimum value requirements), the employee may be eligible for a premium tax credit through the marketplace; and
- That if the employee obtains coverage through the marketplace, the employee will lose the employer’s contribution and corresponding tax benefits.
Hey.. I never got my notice.
Are the tax benefits significant enough to place incentives on employers to push their employees one way or another?
That’s probably a better deal for young, less-experienced workers. However, older higher-paid federal workers will get the shaft on that deal.
Wonder what exactly those tax benefits look like on the employer’s end.
To me this whole new system sounds like a potential mess, which is sad considering we are already dealing with a broken system.
I prefer to get my own policy. If one is young and healthy what’s the need to get one through employer, if it ends up costing the person too much.
I feel that there is going to be some loophole in the system that will mess this up!
I agree with Raiden, if there is going to be a loophole, then there is bound to be a group that will game the system.
What if employer don’t, in part because they run a business that employs most part time workers or informal sector worker who just prefer direct cash payments?