Pay or Play? The Unintended Consequences…

The adoption of the Affordable Care Act, or “Obamacare” as it is known by most, has created a whole new category of strategy for business owners.  In his guest piece recently appearing in the IdahoStatesman, J. Kevin West, a shareholder at Parsons Behle & Latimer, defined the issue as follows:

The pay-or-play aspect of the law is prompting several employer strategies, many with the goal of avoiding penalties. These strategies are, ironically, an unintended consequence of the law, whose goal is to create more employer-based health coverage for individuals. Because of escalating costs of health care and health insurance, many employers are devising strategies to avoid covering employees, thus reducing overhead costs, while at the same time avoiding the law’s penalties.