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Repeal of Free Choice Vouchers & 1099 Tax-Reporting

Less than a month after the one-year anniversary of the Patient Protection and Affordable Care Act (also known PPACA or The Affordable Care Act), two provisions of the health care reform law have been repealed.

Free Choice Vouchers

Although not scheduled to take effect until 2014, this voucher repeal significantly changes the employer responsibility provision under PPACA and should simplify employer strategies for implementation due to reduced administrative and compliance burdens.

Under PPACA, employees who were required to pay between 8% and 9.8% of their household adjusted gross income toward the cost of employer-sponsored health coverage would have been able to receive the employer’s contribution as a “voucher” they could use to purchase coverage through a state-based Health Insurance Exchange. 

Under the guidelines of the state-based Health Insurance Exchange, if the coverage purchased through the exchange cost more than the voucher, the employee would be required to pay the difference. 

Minnesota and Wisconsin State Exchanges

Concerning the Wisconsin and Minnesota state-based Health Insurance Exchanges – both are moving forward toward meeting the state-based mandate under PPACA. 

1099 Tax Reporting

In another concession, President Obama signed a repeal of the 1099 tax reporting mandate that was also part of PPACA. 

The repeal returns the 1099 reporting requirement to its pre-PPACA state.   

Posted 8:57 AM

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