ACA Mandate Update

08 August 2017 By Barry E. Fields

There is some confusion by employers and employees about whether the Employer Mandate to offer coverage and the Individual Mandate to have qualified medical coverage still applies.

The IRS clarified that both the individual and employer mandates continue to apply.

President Trump’s executive order issued on January 20, 2017 intended “to minimize the unwarranted economic and regulatory burdens” of the ACA until the law can be repealed and eventually replaced. It did not change the law.

The IRS Office of Chief Counsel has recently issued several information letters clarifying that the ACA's individual and employer mandate penalties are still effective. These letters were issued in response to confusion over President Donald Trump’s executive order directing federal agencies to provide relief from the burdens of the ACA. The attached ACA Compliance Bulletin summarizes the IRS' information letters.

So the ACA Mandate is still the law of the land and the penalties still apply. Changes to any ACA requirements must be made by Congress through the legislative process.

We will keep you apprised of further developments. In the meantime, please let me know if you have any questions.


Barry E. Fields
Vice President, Employee Benefits
JGS Insurance
960 Holmdel Road, Bldg. 1
Holmdel, NJ 07733
Phone:  732-837-1068
Cell:  908-406-7000
Fax:  732-834-0233


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Last modified on Tuesday, 08 August 2017 16:20

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