ACA: Fiction or Fact

With so much information flying around on the Affordable Care Act, it can be a challenge to determine what is correct. In an effort to clear up ACA confusion, here are a few facts that you may have seen misstated.

Fiction: The out-of-pocket limits applicable to qualified high deductible health plans are the same as limits imposed on health plans.
Fact: Actually, the limits applicable to qualified high deductible health plans (HSA compatible plans) are slightly lower than the ACA limits. This can be very important since using ACA limits can disqualify enrollees in a qualified high deductible plan from contributing to a health savings account.

Fiction: Large employers that do not offer health benefits or that qualify for 2015 transitional relief do not have to file the 2015 Form 1095-C/1094-C.
Fact: All employers that averaged 50 or more full-time employees plus full-time equivalents during the calendar year 2014 must file these forms.

Fiction: The Cadillac Tax only applies to large employers that are subject to ACA employer shared responsibility.
Fact: The Cadillac Tax applies to all employers that offer health plans.

Fiction: U.S. expatriate plans are completely exempt from ACA rules.
Fact: While qualifying plans are exempt from certain market reform rules and hours worked overseas do not accrue toward shared responsibility full-time employee calculations, the Cadillac Tax is scheduled to apply to these plans.

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