Are partnerships required to offer health insurance to partners?

No, partnerships are not required to offer health insurance to partners. However, if they do offer health insurance, they must do so in compliance with the Affordable Care Act (ACA).

What are the requirements for ACA-compliant health insurance plans?

ACA-compliant health insurance plans must meet certain minimum standards, including:

Covering essential health benefits
Providing preventive care without cost-sharing
Offering a range of plan options
Limiting out-of-pocket costs

Can partnerships reimburse partners for health insurance costs?

Yes, partnerships can reimburse partners for health insurance costs. However, the reimbursement must be made through an ACA-compliant employer payment plan.

What are the requirements for ACA-compliant employer payment plans?

ACA-compliant employer payment plans must meet certain requirements, including:

Being offered to all eligible partners
Providing a uniform level of benefits
Not discriminating in favor of highly compensated partners

What are the penalties for non-compliance with the ACA?

Partnerships that fail to comply with the ACA may be subject to penalties, including:

A fine of up to $36,500 per year per employee
A tax on the value of the health insurance benefits provided

What are some tips for partnerships considering offering health insurance to partners?

Partnerships considering offering health insurance to partners should:

Consult with a licensed agent to ensure compliance with the ACA
Compare different plan options to find the best fit for their needs
Consider the cost of offering health insurance and the potential impact on their budget
Communicate with partners about the health insurance options available to them

Case Demonstration

A small LLC with two partners is considering offering health insurance to its partners. One of the partners is leaving his current job to staff the business full-time. The partners are trying to figure out how to reimburse the partner for his health insurance costs without running afoul of the ACA.

The partners could set up an ACA-compliant employer payment plan. This would allow them to reimburse the partner for his health insurance costs on a tax-free basis. The plan would need to be offered to both partners and would need to provide a uniform level of benefits.

The partners could also decide to purchase a group health insurance plan. This would allow them to share the cost of health insurance with the other employees in the group. The plan would need to meet the ACA requirements for group health insurance plans.

The partners should consult with a licensed agent to discuss their options and to ensure that their plan is ACA-compliant.