Health Insurance group plan dropped (during the year)

[ILLMAS]

Scenario I

 

Let's say a business had an group plan that was initiated before March 23, 2010 (grandfathered for ACA purpose) and in mid-year 2014, they decided to drop the plan and let each employee get insurance on their own.  For accounting purposes, how would the first half of insurance expense be reported on the books?

 

Scenario II

 

Let's say a business had an group plan that was initiated after March 23, 2010 (not considered grandfathered for ACA purpose) and in mid-year 2014, they decided to drop the plan and let each employee get insurance on their own.  For accounting purposes, how would the first half of insurance expense be reported on the books?

 

 

In both scenario, the business has 10, 6 participate and the rest have insurance through their spouse.

 

 

 

[Lee B]

They would both be deductible business expenses for 2014.

 

if there is a "gotcha" in this question, I guess I don't see it.

 

The discrimination rules were delayed beyond 2014 until ?

[Pacun]

Businesses with less than 50 (I think) employees are not affected by ACA so they can do whatever they want regarding insurance.

[Lee B]

Businesses with less than 50 (I think) employees are not affected by ACA so they can do whatever they want regarding insurance.

That's only true for 2014 and perhaps 2015. There were anti-discrimination rules included in the Affordable Care Act that applies

to all Employer Group Health Insurance Plans regardless of size, but for political reasons, the implementation of these rules

have been delayed until some future date, tentatively Jan 1st 2016.

[ILLMAS]

Many labor attorneys are encouraging businesses to start following the non-discrimination rule even if it's not into affect.  

[Lion EA]

If a business has a plan, they have to follow the new rules for plans, for the most part.  If they have no plan AND fewer than 50 employers, then they are not subject to ACA rules.  And, then there's OMG.  One Member Group, that can continue doing what they've been doing as long as they have no other employees.  Disagreement on whether the law refers to the number of members of the group plan or number of employees of the company to qualify as an OMG.