Employer Payment Plans

What is an Employer Payment Plan?

An employer payment plan is defined as an arrangement under which an employer reimburses an employee for some or all of the premium expenses incurred for an individual health insurance policy or arrangements under which the employer uses its funds to directly pay the premium for an individual health insurance policy covering the employee.

Employer Payment Plans Do Not Comply With the ACA

It does not matter if an employer provides reimbursements or payments for individual health insurance policies on a pre-tax or after-tax basis:

  • An arrangement under which an employer provides reimbursements or payments that are dedicated to providing medical care, such as cash reimbursements for the purchase of an individual market policy, is itself a group health plan.
  • Accordingly, the arrangement is subject to the ACA market reforms applicable to group health plans without regard to whether the employer treats the money as pre-tax or post-tax to the employee, and cannot be “integrated” with individual market policies to satisfy the market reforms.

Note: An exception exists for qualified small employer HRAs.


Employer payment plans may be subject to a $100 per day excise tax per applicable employee (which is $36,500 per year, per employee) under the federal tax code.

AWS Insurance

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Call Us Today 1-800-375-5563
New Orleans 504-883-4111

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4501 W. Napoleon Ave. Suite 200
Metairie, LA 70001

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Melinda Martin

Account Executive

Melinda began her insurance career in 1985 with Alexander & Alexander where she received her Property & Casualty and Life & Health license. Since then she has worked at various agencies in the New Orleans area and in California as a senior account manager for Employee Benefit Plans.  While in California, she was also the Membership Director for the Burbank Chamber of Commerce. Melinda joined the AWS team in July of 2015.

Michael A. Seeling

Vice President

Graduated from the University of Louisiana at Lafayette with a B.A. in Insurance Risk Management and is a graduate of Archbishop Rummel High School in New Orleans. He joined AWS in October of 2008 and has been awarded the Patient Protection and Affordable Care Act Certification (PPACA). Additionally, he is working towards his Certified Insurance Counselor (CIC), Registered Health Underwriter (RHU), and Registered Employee Benefits Consultant (REBC) designations. He is also a member of the National Association of Health Underwriters (NAHU), National Association of Insurance Financial Advisors (NAIFA), and is an active member of the Fore!Kids foundation.

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