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IRS bars employers from dumping workers into health exchanges

The New York Times, May 27, 2014

Many employers had thought they could shift health costs to the government by sending their employees to a health insurance exchange with a tax-free contribution of cash to help pay premiums, but the Obama administration has squelched the idea in a new ruling. Such arrangements do not satisfy the health care law, the administration said, and employers may be subject to a tax penalty of $100 a day — or $36,500 a year — for each employee who goes into the individual marketplace. The ruling this month, by the Internal Revenue Service, blocks any wholesale move by employers to dump employees into the exchanges.