Tag Archive: #iInsurance


Update on 1/1/14 Requirement on Employees to Purchase Coverage


Beal Benefits has been fielding calls and emails from your employees regarding the upcoming requirement that they all must have/purchase health coverage as of 1/1/2014, or be fined by the IRS. This is the most updated information regarding the subject that we will be passing on in response to any calls or emails received at our office.


Originally, the IRS stated any individual who did not purchase health insurance effective 1/1/14 would be fined.

The challenge with the 1/1/14 requirement date is that most groups’ insurance renewal dates are not January 1st. Since Healthcare Reform mandates are not considered a Qualifying Event to allow employees to enroll for their Employer Sponsored plan outside open enrollment, employees who work for groups whose renewal date is not January 1st will need to wait until open enrollment in 2014 to enroll. (Unless, of course, they are able to show proof of a Qualifying Event.)


The IRS just realized this is a dilemma and will now allow Transitional Relief for this exact situation.

Here are the new regulations to accommodate employees whose employer sponsored plan does not renew January 1st, who will not be able to enroll for their employer sponsored plan until their 2014 open enrollment:

  1. Employees and dependents eligible for an employer-sponsored health plan with a renewal date other than January 1st may avoid the IRS penalty fine if they enroll for health coverage during their open enrollment period in 2014.
  2. Therefore, employees that are not currently insured and do not purchase health coverage through an individual plan or the State Exchanges effective 1/1/2014 will not be fined if they enroll for health benefits at your company’s open enrollment in 2014.
  3. For example: Your benefit renewal date is 4/1/14, and your currently uninsured employees enroll for the group plan at your open enrollment. The way HCR law was originally written says these employees would be fined for not having health coverage on 1/1/2014. The newly revised regulations state the employee can remain uninsured from 1/1/14-3/31/14 (or until your open enrollment period in 2014) and as long as they enroll for their employer sponsored plan effective 4/1/14 (or at your open enrollment date in 2014), they will not incur the IRS fine.


Healthcare reform laws are being amended often and Beal Benefits will keep you up to date with any and all changes.

Thank You,

Tom Beal


Beal Benefits, “We make your employees happier and your bottom line healthier”