Can employers reimburse employees for coverage purchased on the Affordable Care Act exchanges? While it seems this question is still being debated among some service providers and a small group of insurance agents, the guidance on this issue is very clear:
Prior to Dec. 31, 2013, some employers were able to provide health insurance by reimbursing their employees for their own individual (non-group) health insurance on a pre-tax or tax-free basis. This approach (also known as a defined contribution health plan) was a popular alternative and permissible prior to 2014 under a few different tactics. But since the beginning of 2014, these plans have been strictly prohibited.
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