IX. Offers of Coverage
A. In General
For an employee to be treated as having been offered coverage for a month (or any day in that month), the coverage offered, if accepted, must be applicable for that month (or that day).
For purposes of section 4980H(a), the proposed and final regulations provide that an applicable large employer member is treated as offering coverage to its full-time employees (and their dependents) for a calendar month if, for that month, it offers coverage to all but five percent or, if greater, five of its full-time employees (provided that an employee is treated as having been offered coverage only if the employer also offered coverage to that employee’s dependents as applicable) play store app kostenlos downloaden. This relief applies to a failure to offer coverage to the specified number or percentage of employees (and their dependents), regardless of whether the failure to offer was inadvertent. The alternative margin of five full-time employees (and their dependents), if greater than five percent of full-time employees (and their dependents), is designed to accommodate relatively small applicable large employer members because a failure to offer coverage to a few full-time employees (and their dependents) might exceed five percent of the applicable large employer member’s full-time employees herunterladen. Commenters requested that this margin be adjusted based on the size of the employer so that large employers are not allowed to exclude large numbers of employees. This comment is not adopted because use of a uniform percentage reduces complexity and is easier for employers to apply. See section XV.D.7 of this preamble for limited 2015 transition relief under section 4980H(a) for certain employers that offer coverage to at least 70 percent of their full-time employees (and their dependents), and see section XV.D.5 of this preamble for transition relief regarding offers of coverage to dependents wps office kostenlos downloaden.
The final regulations do not apply any specific rules for demonstrating that an offer of coverage was made. The otherwise generally applicable substantiation and recordkeeping requirements in section 6001 apply, including Rev. Proc. 98-25 (1998-1 CB 689). In addition, the offer generally can be made electronically. See § 1.401(a)-21 for a safe harbor method for use of electronic media windows xp professional kostenlos herunterladen.
Consistent with the proposed regulations, the final regulations provide that if an employee has not been offered an effective opportunity to accept or decline coverage, the employee will not be treated as having been offered the coverage for purposes of section 4980H. In response to comments, the final regulations provide that an effective opportunity to decline is not required for an offer of coverage that provides MV and is offered either at no cost to the employee or at a cost, for any calendar month, of no more than 9.5 percent of a monthly amount determined as the federal poverty line for a single individual for the applicable calendar year, divided by 12 hello neighbour gratis herunterladen.  Thus, an employer may not render an employee ineligible for a premium tax credit by providing an employee with mandatory coverage (that is, coverage which the employee is not offered an effective opportunity to decline) that does not meet MV or that may not be affordable. See the section entitled “Background” of the preamble to the proposed regulations regarding minimum value of eligible employer-sponsored plans and other rules regarding the health insurance premium tax credit for a discussion of concerns raised by an arrangement under which employees are required, as a condition of employment or otherwise, to be enrolled in an employer-sponsored plan that does not provide MV or is unaffordable, at 78 FR 25909, 25910 (May 3, 2013) Download videos for kids.
The final regulations also provide guidance on an offer of coverage for an employee who is employed by more than one applicable large employer member for a calendar month. The final regulations provide that an offer of coverage by one applicable large employer member to an employee for a calendar month is treated as an offer of coverage by all applicable large employer members for that calendar month pc data. Thus, if one applicable large employer member offers coverage to the employee for a calendar month, every other member of the same applicable large employer is considered to have made the same offer of coverage to that employee for purposes of determining the liability under section 4980H, if any, of each applicable large employer member. For example, in the case of a group of applicable large employer members operating a single plan intended to offer coverage to employees of all the applicable large employer members, any employee offered coverage under the plan would be treated as receiving an offer of that coverage from each applicable large employer member illegal musik alben downloaden. For a discussion of how any assessable payment under section 4980H for a calendar month would be allocated among applicable large employer members if a full-time employee performs services for two or more applicable large employer members during the same calendar month, see section X of this preamble.
Commenters requested that employers not be subject to an assessable payment for failure to offer coverage to full-time employees who have coverage from other sources, such as Medicare, Medicaid or a spouse’s employer ps4 games for free in full version 2020. The final regulations do not adopt this comment because it is not consistent with section 4980H and would require that the employer verify alternative coverage in a manner not contemplated by the statute (for example, obligating an employer to question its employees as to Medicaid eligibility or a spouse’s eligibility for and purchase of employer-sponsored coverage). However, an employee who is eligible for Medicare or Medicaid is not eligible for a premium tax credit, and in cases in which no full-time employee receives a premium tax credit (for example, because all of an employer’s full-time employees are eligible for Medicare or Medicaid), the employer will not be subject to an assessable payment under section 4980H windows explorer 11 download kostenlos.  In addition, for an employer that satisfies the requirements to avoid a payment under section 4980H(a), the employer will not be subject to a payment under section 4980H(b) with respect to those employees (because they are not eligible for a premium tax credit).
The final regulations clarify that an employee’s election of coverage from a prior year that continues for every succeeding plan year unless the employee affirmatively elects to opt out of the plan constitutes an offer of coverage for purposes of section 4980H.
Commenters expressed concern about potential liability under section 4980H in the case of an applicable large employer that cannot obtain or maintain coverage for its employees because the employer cannot satisfy a health insurance issuer’s minimum participation requirements. In the large group market, a minimum participation requirement cannot be used to deny guaranteed issue. For small employers, such as relatively small applicable large employers, final regulations issued by HHS provide that an issuer must guarantee issue coverage to a small employer during an annual, month-long open enrollment period regardless of whether the small employer satisfies any minimum participation requirement. See 45 CFR 147.104(b)(1). HHS regulations generally define a small employer as one that has at least one, but not more than 100, employees. For plan years beginning before January 1, 2016, states may set the upper limit at 50 employees.
Commenters requested that the final regulations treat an offer of coverage made by the employer during the collective bargaining process between an employer and a union that is not accepted by the union as an offer of coverage to all employees covered by the collective bargaining agreement. However, even where an offer to the union has been made and rejected, the affected employee has never been provided a chance to accept an offer of coverage in these circumstances. Accordingly, the final regulations do not adopt this suggestion.