Keith McMurdy was quoted in the Credit Union Times article "12 Ways to Avoid Obamacare Fines." While the full text can be found in the September 17, 2013 issue of Credit Union Times, a synopsis is noted below.
The Department of Labor (DOL) has gone on record saying that they will not be enforcing the penalties linked to the requirements of the Patient Protection and Affordable Care Act (PPACA). Employers are required to obey the rules, but if they do not, it is up to them to report the noncompliance themselves.
While that may lead employers to believe they do not have to comply with the rules, McMurdy says fines may come from somewhere other than the DOL such as the IRS, the DOL's Wage and Hour Division, or an employee/employee's representative.
"Effectively, the DOL is saying, 'We won't penalize or fine you.' But they are wording their position very carefully. What they don't say is that someone else might decide to go ahead and enforce the sanctions," said McMurdy. "How much of a stretch would it be for an employee at a company with 2,000-3,000 employees to decide to file a class-action suit on behalf of all the workers because you didn't comply with the notification rule? Not only would you have to pay the fine, but all attorney fees as well."
McMurdy says that it's not just the insurance options notification situation that could put employers at risk. He lists several other potential violations where employers could face penalties including failure to offer coverage to dependents up to the age of 26, restrictions on emergency room visits, failing to provide timely notices, and restrictions on designation of primary care physicians.
Originally published in Credit Union Times
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