King v. Burwell – Supreme Court Confirms Tax Subsidies are Available in All States

Nancy K. Campbell • June 26, 2015

In an earlier blog post this year, I discussed the King v. Burwell case and the possible ramifications if the United States Supreme Court did not uphold the Internal Revenue Service position that residents in states with either a state or federal Health Care Exchange are entitled to receive subsidies from the federal government to help pay for Health Care Exchange coverage.  On June 25, 2015, in a 6-3 decision , the Supreme Court ruled that the federal subsidies are available in states with federal Health Care Exchanges as well as states with state Health Care Exchanges.

The Court did not rubberstamp the IRS’ position, but rather found that it was “the Court’s task to determine the correct reading of” the statute.  Although it did not defer to the IRS’ earlier interpretation, the Court came to the same conclusion as did the IRS.  In effect, the Court’s decision maintains the status quo.  The impact of this decision is that individuals in all states will continue to be eligible for federal subsidies to help pay for coverage acquired through Health Care Exchanges and large employers in all states remain subject to penalties under Code Section 4890H if they do not offer health care coverage to a sufficient percentage of their full-time employees and their children.

This is the Supreme Court’s second ruling in three years to uphold the Health Care Reform Act.

For more information regarding the large employer shared responsibility penalties, please see “ Health Care Reform’s Employer Shared Responsibility Penalties: A Checklist for Employers.”

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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