Employment, Labor & Benefits Advisory: Treasury Department Proposes Rule Implementing Premium Tax Credits Under the Affordable Care Act
8/17/2011
The Patient Protection and Affordable Care Act includes provisions under which certain low-income individuals may qualify for premium tax credits that assist them with enrolling in “qualified health plans” offered through state-based insurance exchanges. Premium assistance tax credits serve two purposes: First, they enable low-income individuals to comply with the “individual mandate,” i.e., the requirement that US citizens and resident aliens obtain and maintain health insurance coverage. Second, the determination of “assessable payments” imposed on certain large employers that offer coverage to their full-time employees depends on the number of full-time employees who qualify for, and accept, the credit. The Treasury Department recently issued a proposed regulation implementing the act’s premium tax credits.
