Bombshell: White House Rules Employers Can’t Dump Workers into Obamacare

It figures the Obama administration would wait for a three-day weekend to announce its latest executive rule change to Obamacare (aka the “law of the land”).

This one is a doozy. The implications are so far-reaching that the official White House newspaper, the New York Times, buried the story by Robert Pear on page A12 of the New York edition. Here’s the gist of it:

Many employers had thought they could shift health costs to the government by sending their employees to a health insurance exchange with a tax-free contribution of cash to help pay premiums, but the Obama administration has squelched the idea in a new ruling. Such arrangements do not satisfy the health care law, the administration said, and employers may be subject to a tax penalty of $100 a day — or $36,500 a year — for each employee who goes into the individual marketplace.

The ruling this month, by the Internal Revenue Service, blocks any wholesale move by employers to dump employees into the exchanges.

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Many employers — some that now offer coverage and some that do not — had concluded that it would be cheaper to provide each employee with a lump sum of money to buy insurance on an exchange, instead of providing coverage directly…


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