I completed training for a carrier’s new “Defined Contribution” plan and in the training they specifically identified that the “Contribution” cannot be used for purchasing a IM policy, only for their Limited Medical or Supplemental policies. If you doubt this check with a Benefits Attorney.
Our National Association recently presented a seminar using a well known Washington law firm who mentioned – it is illegal for the employer to directly pay for individual insurance. Yet some “agents” still are “selling” the idea of a DC to pay for individual insurance for employees.
I have a client with 26 employees getting ready to cancel their group plan and increase payroll to help them pay for ACA plans. I will be working with them to determine the total costs of making this change – in lost deductions to the client plus increased taxes for the higher payroll. If they make the decision, I will offer to help the employees enroll in the exchange as this is a qualifying event and I am certified.