ACA and Employer Reimbursed Premiums

[jmarkk1]

Just found out that we are no longer allowed to have benefit reimbursements deducted from our income.
So, what can be done to lower premiums?
I have client that makes $40k/year and family of 5. He's $900 away from qualifying for medicaid.
His employer has paid for benefits via list bill with Assurant. Renewal rates are too high.
We decided to check for exchange plans and get subsidy, but now we have to count employer reimbursement. Rates jump from $700 (at a $40k income ) to $1100 (at a $48k income factoring in employer reimbursed premiums )
What can be done?
This seems extremely unfair.

 

[kgmom219]

Are you an agent? FFM certified?

 

[jmarkk1]

I am agent and FFM certified

 

[kgmom219]

I am agent and FFM certified

Hmmm....you might want to check the rule book. Employers cannot pay/reimburse for indy health insurance. The fines are quite hefty.

 

[jmarkk1]

The employer doesn't technically pay. In years past employer could separate salary and benefits and employee was not taxed on benefits.
Last year there was no worries. This year accountant says employer is not allowed to do this.

 

[kgmom219]

The employer doesn't technically pay. In years past employer could separate salary and benefits and employee was not taxed on benefits.
Last year there was no worries. This year accountant says employer is not allowed to do this.

Uhhh...no, employer cannot pay.

It is what it is. Put the numbers in, sherpa spits them out. Pick a plan and NEXT.

 

[VT33]

Employer can't "reimburse". I don't see how anything can be done if an employer drops the group plan and gives everyone a raise.

But to the OP's point, this raise will impact income and subsidies.