If you own a dental practice, you have a number of responsibilities to your employees, regardless of the size of your organization. One of those responsibilities is to ensure that employer health plans are administered properly – a task which may sound simple, but in practice can be anything but. That is because even the most informed and intelligent employers may be finding themselves confused by all of the requirements under the Affordable Care Act (ACA).Fortunately, the IRS has recognized the challenge that understanding the ACA can be, and in response it has released new guidelines intended to assist employers with questions they may have on a number of healthcare-related topics. IRS Notice 2015-87 provides guidance on multiple topics relevant for employers, including, but not limited to, the following issues:

1) Opt-out payments. Many employers give their employees options when it comes to their health plans. One of those options is to provide employees who choose not to enroll in the employer-provided plan with an opt-out payment. The IRS Notice clarifies that this payment should be counted as part of an employee’s premium payment when determining whether the employer is satisfying the affordability provisions of the Affordable Care Act.

(2) HRAs and the ACA. What sounds like a confusing acronym battle is actually a pretty common issue: Can funds from Health Reimbursement Arrangements (HRAs) be used to reimburse premiums paid for market coverage? Notice 2015-87 answers multiple questions related to the intersection of HRAs and the ACA.

(3) COBRA and FSA carryovers. The notice addresses issues as to how COBRA intersects with health flexible spending account plans (FSAs) when those FSAs offer carryover options.

Regardless of whether your dental practice is directly affected by any of the issues above, it is important to stay on top of healthcare-related issues in the workplace. This IRS Notice is recommended reading for anyone looking to ensure compliance with IRS regulations today and into the future.

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Frequently Asked Questions

Q: What are opt-out payments in employer health plans?
A: Opt-out payments are incentives given to employees who choose not to enroll in their employer-provided health plan. According to IRS Notice 2015-87, these payments should be considered part of an employee’s premium payment when determining affordability under the Affordable Care Act (ACA).

Q: How does the ACA affect Health Reimbursement Arrangements (HRAs)?
A: The ACA intersects with HRAs regarding the reimbursement of premiums paid for market coverage. IRS Notice 2015-87 provides guidance on various questions related to HRAs and their compatibility with the ACA.

Q: What does the IRS Notice say about COBRA and FSA carryovers?
A: IRS Notice 2015-87 addresses how COBRA interacts with health flexible spending account plans (FSAs), particularly in cases where FSAs offer carryover options for unused funds.

Q: Why is it important for dental practices to stay informed about healthcare-related issues in the workplace?
A: Staying informed ensures compliance with IRS regulations, particularly regarding healthcare-related matters. IRS Notice 2015-87 provides valuable guidance for employers, including dental practices, navigating the complexities of the Affordable Care Act.

About the Author

At Dental & Medical Counsel, we've been instrumental in realizing the practice goals of countless healthcare professionals. Whether you're looking to purchase, launch, or sell a healthcare practice, our expertise is your guide. Beyond the initial stages, we're committed to ensuring your healthcare practice remains legally compliant.

We provide comprehensive support, including employment law protections, healthcare contract reviews, and assistance with healthcare employment agreements. Additionally, we specialize in incorporating healthcare practices and securing trademarks. And for long-term planning, our services extend to helping healthcare professionals with succession and estate planning. Trust us to be your partner in every step of your healthcare practice journey.

About Ali Oromchian, Esq.

Your Healthcare Lawyer

Ali Oromchian, JD, LL.M. is the founding attorney of the Dental & Medical Counsel, PC law firm and is renowned for his expertise in legal matters

Ali Oromchian, JD, LL.M., is a leading legal authority in dental law and the founding attorney of Dental & Medical Counsel, PC, with over two decades of experience. His deep connection to dentistry comes from his wife's nearly two-decade-long career as a pediatric dentist.

This personal insight fuels his dedication to empowering dentists to navigate their legal challenges and achieve their practice goals. In doing so, Ali has helped thousands of doctors open their practices while maintaining legal compliance.

Ali is frequently quoted and contributes articles to dental publications, including the California Dental Society, Progressive Dentist, Progressive Orthodontists, Dentistry Today, Dentaltown, and The New Dentist magazines, further showcasing his commitment to the dental community.