This is not an advocacy piece on the economic merits of the American Rescue Plan Act or other proposals to replace the Affordable Care Act. Such a piece is beyond the scope of my personal expertise, as well as my expertise in politics. Instead, this is an advocacy piece that tries to explain how the Act, as reported by Bloomberg and the various news outlets that have reported it, will help those struggling with rising premiums under Obamacare.
This piece will begin by looking at some of the provisions that could help millions of middle class and low income Americans who currently are struggling under the Affordable Care Act (Obamacare). This section of the Act will likely not make any changes to the structure or the cost of the healthcare that is available under Obamacare. This section is likely to focus on tweaking the system and benefits that would be available to more middle income and lower income Americans under the Act.
This is not a CBO scoring of the Act as it is currently constructed. This is a speculative analysis of possible changes to what Obamacare has delivered for consumers and businesses under Obamacare. With the Trump Administration coming into office, the American Rescue Plan Act is likely to be enacted and we should expect to see some tweaks to the implementation of Obamacare. However, we are unlikely to see wholesale changes to the architecture of the Affordable Care Act.
I would point out that just as with tax reform, if the American Rescue Plan Act passes, it will likely not do everything it was expected to do. The Act will likely be subject to review and revisions by the Trump Administration and Republican Congress. The ACA was passed without a single Republican vote in Congress. Since that time, the Congress has engaged in extensive debate on healthcare policy. As such, we may expect the Congress to consider making some tweaks to the American Rescue Plan Act in the months ahead. That said, we will have to wait and see what, if any, changes will be made.
The American Rescue Plan Act
There is much to be learned about the American Rescue Plan Act by looking at the Bloomberg article, which is a summary of the legislation. It is important to note that the article includes some language that is not particularly accurate. The first thing to note is that the American Rescue Plan Act was passed in the House by a vote of 227-198. That is not a very strong vote. However, it may act very well. Let’s take a big on American Rescue Plan Act that how the Senate passes it and what are its main points.
It is also important to note that the American Rescue Plan Act has not yet been voted on by the Senate, where the Republicans do not hold the majority. It is likely that the Senate will add some provisions to the Act. The second thing to note is that the American Rescue Plan Act has no official title. It is simply the American Rescue Plan Act. This is an unusual approach to legislation, as titles are often used to refer to sections of a bill.
The American Rescue Plan Act is a very strange piece of legislation. It does not pass the sniff test for an actual bill in the sense that it is less than 300 pages. The actual text of the Act is 28 pages and three pages are explanatory sections. It is very possible that the actual text of the Act will be rewritten over time and will be significantly different when it is finally enacted into law. However, it is possible to look at the bill’s legislative history.
How American Rescue Plan Act is Related with Employee Retention Credit
The first thing to look at is how the American Rescue Plan Act relates to the Employee Retention Credit, which is the major way the ACA was promoted. The Employee Retention Credit was introduced in the ACA as an incentive to employers to provide healthcare coverage to their employees. An employer that paid the premiums for an employee in 2014 was allowed to claim a credit. The dollar amount of the credit depended on the size of the employer’s payroll and the number of employees it employed.
When one thinks of ACA, the Employee Retention Credit is one of the most popular provisions of the ACA. In fact, the Employee Retention Credit was one of the two provisions that was most often mentioned in the 2015 debate on the ACA. Unfortunately, the Employee Retention Credit was one of the ACA provisions that could not make it into law. It is possible that the provisions for the Employee Retention Credit will be included in the American Rescue Plan Act.
Looking at the American Rescue Plan Act, there are several provisions that relate to the Employee Retention Credit. The first is the American Rescue Plan Act’s inclusion of an “Employer Health Care Exemption.” The inclusion of the “Exemption” appears to be related to the American Rescue Plan Act’s discussion of the Employee Retention Credit. The “Exemption” states that the taxpayer “may elect not to provide health coverage for self or family”. This seems to be in reference to the Employee Retention Credit, since an employer cannot use the Employee Retention Credit if it does not provide health coverage.
The “Exemption” states that the taxpayers “may elect not to pay any amount to provide health coverage for self or family.” This seems to be in reference to the amount paid for the Employee Retention Credit. There is one other interesting part of the “Exemption.” It states that the exemption is “not available for a taxpayer who is being treated as the employer of a dependent, except for purposes of the Federal Employees Health Benefits Program.”
The Employee Retention Credit is not available for the self or family, except for the Federal Employees Health Benefits Program. The “Exemption” appears to be written to encourage the “Exempt” person to be the employer of a dependent. As a result, the individual that the “Exemption” person hires would not be eligible for the Employee Retention Credit.
If the American Rescue Plan Act passes, it would seem that the American Rescue Plan Act would benefit both the self and family, and a large employer who employs employees as well as their dependents. It is a little early to say how the American Rescue Plan Act would play out in the context of employer health care plans. However, it appears that it would be a major boon for small employers.
Important Points About American Rescue Plan Act
The American Rescue Plan Act appears to be another example of the failed promises of the ACA. While some of the provisions in the American Rescue Plan Act may benefit small employers, the American Rescue Plan Act as a whole will continue to adversely impact small employers.
- Moratorium on Entry to the Market for Employer Health Care Insurance (or Voluntary Entrant) – The American Rescue Plan Act states that a small employer that currently offers health insurance will not be able to offer any health insurance in the future. This seems to indicate that a small employer would not be able to offer any insurance after the 2023 deadline.
- Employer Tax Credits for Deductible, Lifetime, and Premiums – The American Rescue Plan Act contains a new tax credit that is not in the ACA, the Emergency Medical Treatment and Labor Act (EMTALA). The American Rescue Plan Act states that an employer that is an EMTALA self-insured employer can receive a tax credit of 35%. The American Rescue Plan Act specifically states that the employer “must pay for its self-insured employee health coverage on a pre-tax basis, without regard to income or earnings.”
- The American Rescue Plan Act specifically states that the employer “must pay for its self-insured employee health coverage on a pre-tax basis, without regard to income or earnings.” The American Rescue Plan Act contains the same tax credit for the employer as the Emergency Medical Treatment and Labor Act.
- The Federal Employers’ Health Benefit Mandate – The American Rescue Plan Act states that an employer that is “not self-insured, and provides employer-sponsored health coverage” can choose to opt out of the Federal Employers’ Health Benefit Mandate. The Emergency Medical Treatment and Labor Act contains a similar exemption for self-insured employers.
A note that follows this tax credit in the American Rescue Plan Act states that the employer must “pay for its self-insured employee health coverage on a pre-tax basis, without regard to income or earnings.” If the employer is self-insured, then the self-insured employer must pay for the self-insured employee health coverage. However, the self-insured employer does not get to pocket the self-insured employee health coverage without paying taxes on it. The self-insured employer will be paying the tax, in the form of a tax credit.
The Emergency Medical Treatment and Labor Act contains a similar exemption for self-insured employers. The American Rescue Plan Act contains a new tax credit that is not in the ACA, the Emergency Medical Treatment and Labor Act. The Emergency Medical Treatment and Labor Act contains the same tax credit for the employer as the Emergency Medical Treatment and Labor Act.
Overall, the American Rescue Plan Act seems to have a few positive provisions. The American Rescue Plan Act contains a new tax credit that is not in the ACA, the Emergency Medical Treatment and Labor Act. The Emergency Medical Treatment and Labor Act contains a similar exemption for self-insured employers.
Why ERC is Smart for Employers and Employees
As an employer, I like having the option to enroll in an ERC as an alternative to offering an ACA compliant insurance policy. Many employers offer ACA compliant health insurance. As a result, their business plan does not necessarily allow for them to afford an ERC. A family with a small or large employer income. The American Rescue Plan Act contains a new tax credit that is not in the ACA, the Emergency Medical Treatment and Labor Act. The Emergency Medical Treatment and Labor Act contains a similar exemption for self-insured employers.
Employee decisions should not be forced on employers. Instead, employers should allow their employees to make the decision to enroll in a qualified health plan or to choose to have a qualified health plan without employer involvement. For example, if an employer offers a high-deductible health plan and a plan-sponsored health savings account, then employees can choose whether to make a payment into an HAS and if the plan-sponsored health savings account is used for qualified health expenses. Employees can also make a choice as to whether to enroll in an ERC and how to use the ERC payment.
Why ERC is Smart for Employers and Employees?
As an employer, I like having the option to enroll in an ERC as an alternative to offering an ACA compliant insurance policy. Many employers offer ACA compliant health insurance. As a result, their business plan does not necessarily allow for them to afford an ERC. A family with a small or large employer income. The American Rescue Plan Act contains a new tax credit that is not in the ACA, the Emergency Medical Treatment and Labor Act. The Emergency Medical Treatment and Labor Act contains a similar exemption for self-insured employers.
Employee decisions should not be forced on employers. Instead, employers should allow their employees to make the decision to enroll in a qualified health plan or to choose to have a qualified health plan without employer involvement. For example, if an employer offers a high-deductible health plan and a plan-sponsored health savings account, then employees can choose whether to make a payment into an HAS and if the plan-sponsored health savings account is used for qualified health expenses. Employees can also make a choice as to whether to enroll in an ERC and how to use the ERC payment.
It’s better for employers to allow employees to make the decision and provide them with a viable option to make the right choice. Because the ERC is portable from employer to employer and has no limit on how much an employee may receive, it can also become a great choice for the employer. An ERC can be used as a form of supplemental health care coverage for an employee and his/her dependents.
For employers to offer an ERC, they have to purchase insurance from a qualified health plan. A qualified health plan is a health insurance plan that meets certain minimum criteria. The Emergency Medical Treatment and Labor Act also states that employers that provide health benefits must offer a qualified health plan.
If an employer provides qualified health benefits, then it also must offer a qualified health plan that meets certain minimum criteria. An employer offering a qualified health plan can offer an ERC to their employees. An ERC can be purchased from a qualified health plan, but only if the qualified health plan has a surcharge that is paid by the employer.
Why is an ERC a good option for workers and employers?
For an employee, an ERC is an affordable option and an effective way to keep more of their hard-earned money. If an employee does not have an employer-sponsored health insurance policy, the ERC is an affordable alternative for the employee. In addition, an ERC also allows the employee to make decisions as to which qualified health plan to choose.
For employers, an ERC is a good option because it allows an employer to continue to offer a health plan that meets the minimum requirements of a qualified health plan. The American Rescue Plan Act limits how much an employer can charge for a health plan and how many coinsurance and deductibles an employer may charge an employee for a health plan.
Therefore, an employer can offer a health plan that meets the minimum requirements of a qualified health plan, but the employee may make the choice of using the ERC to make the choice as to which qualified health plan to use. The ERC can then be used to pay for the qualified health plan that the employee chooses to use. The American Rescue Plan Act states that an employer cannot charge any fees for providing an ERC. The cost of an ERC is not paid by the employer, and the ERC is portable from employer to employer. An ERC can be used as a supplemental health care coverage for an employee and his/her dependents.
In addition, the American Rescue Plan Act states that a qualified health plan cannot charge fees for any services that are covered under a health insurance plan, such as, emergency room visits. Because an ERC is portable from employer to employer and has no limit on how much an employee may receive, it can also become a great choice for the employer. The ERC can be used as a form of supplemental health care coverage for the employer.
An ERC can be a great option for the employees of the employer and a great choice for the employer. An ERC can also become an alternative to purchasing a group health plan for the employee and the employees of other employees. The American Rescue Plan Act provides that employers may not charge fees for providing ERCs.
Employers that do not offer a qualified health plan and employers that want to offer a health insurance plan to their employees can take advantage of the ERC. An employer that offers an ERC can offer an ERC to their employees. However, the minimum number of ERCs an employer may purchase is three. If an employer offers only one ERC, then it must be the highest cost ERC available. If an employer offers more than three ERCs, then the cost of each ERC cannot exceed $10,000. An ERC is the same as a qualified health plan, but the employee may make the choice of using the ERC to make the choice as to which qualified health plan to use.
Employees cannot receive any premium increases because of an employer’s decision to provide an ERC. Any ERC premiums will be equal to, or greater than, the cost of the employer’s qualified health plan. An ERC will be “transparent” in that it will show the cost of the ERC to the employee. It is the employee’s responsibility to pay any increase in the ERC cost.
Under the American Rescue Plan Act, it is illegal for an employer to:
1) Discriminate against any employee by increasing the ERC cost to them;
2) Increase the cost of a qualified health plan;
3) Charge any fees to a qualified health plan; or
4) Participate in any other activity that includes the sale of health insurance or any health insurance benefit plan that is not a qualified health plan. A law firm that advises an employer on providing an ERC has the authority to enforce the law.
What if a health insurance provider is offering health insurance? If an employer is seeking to purchase an ERC, it is required that an employer not purchase an ERC from the health insurance provider. It is illegal for an employer to do so. If an employer sells health insurance, it is prohibited from also selling an ERC. An employer can choose to buy an ERC from another health insurance provider. An employer that chooses to do so must also make the ERC available to the employees of the employer.
One way to find out if an ERC is being offered by your employer is to inquire if you have a choice to go with your employer’s preferred health plan or an ERC. However, you must be covered under your employer’s qualified health plan. If you are not covered under an employer’s qualified health plan, you cannot have a choice to choose an ERC.
What are the requirements for the ERC?
Generally, an employer must have a business that has at least 20 employees or at least 10 employees. The ERC is an option offered to any employees in the employer’s business. In addition, the cost of the ERC must not exceed the cost of a qualified health plan for the employer. There are a lot of other requirements too. We are not going to discuss them in details here. Employee Retention Tax Credit or ERC Program is beneficial for employees in many cases.
Can employees’ spouse choose to receive the employer’s health insurance?
Yes. In order to receive an ERC, an employee’s spouse cannot receive the employee’s qualified health plan. However, the employee’s spouse may choose to receive the employer’s ERC.
Can the employer require that an employee’s spouse enroll in the employee’s qualified health plan, if that spouse prefers an ERC?
No. An employer is prohibited from requiring that the spouse of an employee enroll in the employee’s qualified health plan if the spouse prefers an ERC. However, an employer may require that an employee’s spouse enroll in an ERC if the spouse is a dependent on the employee’s qualified health plan. If an employee’s spouse is a dependent on the employee’s qualified health plan, the employee’s spouse is generally not subject to the ERC and must enroll in the ERC. An employer cannot enroll any employees’ dependents in the employee’s qualified health plan. It is illegal for an employer to make any such enrollment except for an emergency use.
Can an employee’s dependent’s enrollment in the ERC be terminated when the dependent turns 18 years of age?
An employee’s dependent’s enrollment in the ERC may not be terminated when the dependent turns 18 years of age, provided the adult child continues to enroll in an eligible health plan.
What if the ERC is not available to a particular employee’s spouse?
If the spouse of a particular employee’s employee is not enrolled in the employee’s qualified health plan, the spouse may enroll in an ERC. An employee’s spouse may not be enrolled in the employee’s qualified health plan unless the spouse is also enrolled in an eligible health plan. However, an employee’s spouse may enroll in the employee’s qualified health plan.
What if an employee’s spouse is married to someone who is not the spouse of the particular employee?
If the employee’s spouse is married to someone who is not the spouse of the particular employee, then the spouse may not enroll in an ERC.
How long does an employee’s spouse have to be enrolled in the employee’s qualified health plan to receive an ERC?
The spouse of a particular employee is eligible for the ERC, if the spouse has been enrolled in an eligible health plan for at least the past three months, and the employee has continued to pay the same premium. An employee’s spouse may be enrolled in the ERC at any time during the one year period after the employee first purchases an ERC and before the spouse begins enrollment in an eligible health plan.