IRS ruling for retirees

Discussion in 'UPS Retirement Topics' started by Ms.PacMan, Oct 27, 2013.

  1. Ms.PacMan

    Ms.PacMan Well-Known Member

    ....retiree coverage under a group health plan is minimum essential coverage. However, the final regulations provide that, for the lack of affordable coverage exemption, an individual will not be eligible for retiree coverage unless the individual enrolls. Therefore, an individual who is eligible for retiree coverage but does not enroll disregards that eligibility in determining qualification for the lack of affordable coverage exemption.


    In a nutshell, it means that although retiree insurance plans have to provide minimum essential coverage, if you do not enroll, then you can apply for insurance/subsidies on the exchanges.

    An individual would have to look at both to see which was more cost effective.
    This site provides a rough estimate of exchange insurance costs Health Insurance Exchanges