The Affordable Care Act (ACA) contains important healthcare changes that affect all ministries. Many ministries use an Employer Payment Plan (EPP) to reimburse or directly pay for employee health care premiums. Under the ACA, this type of health plan fails to comply with reforms in most cases and is no longer allowed. Small- to medium-sized employers may face an excise tax of $100 per day, per employee, for violations.
If your ministry does not want to participate in a group health plan, but would like to continue subsidizing employee health insurance costs, consider the following:
Group insurance plans are available for employers with under 50 employees through the Small Business Health Options Program Marketplace (SHOP). All ministries should have their health plans reviewed by an attorney, tax professional or benefits specialist to be sure they comply with the rules.
The information in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.