Free Choice Voucher Eliminated Along With 1099 Reporting

The law that President Obama signed this month to eliminate 1099 reporting under the Patient Protection and Affordable Care Act (PPACA) also eliminated the "Free Choice Voucher" component of the health care act.

Free Choice Vouchers were to be made available to employees who earned less than 400 percent of the poverty line and whose contribution to employer-sponsored health insurance would fall between 8 and 9.8 percent of household income. These employees could then take their vouchers to the state insurance exchanges (set to begin operating in 2014) to choose a health plan.

The idea behind these vouchers was that they would serve as an alternative to employer penalties for employees who chose to drop out of their company's health plan. However, fear soon spread that these vouchers would predominantly entice younger—and healthier—employees away from the company plan, resulting in lower risk pools and higher costs for employer coverage.

Rumor has it that the voucher may reappear in another guise, but for now it's gone.

Employers, keep your workforces informed of their rights and obligations under PPACA by procuring and displaying our Health Care Reform Employee Information Poster. Get yours today.

NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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