The Internal Revenue Service (IRS) is re-using a small-group health insurance program patch it developed for the 2014 plan year.
The patch will help employers in Iowa qualify for the Patient Protection and Affordable Care Act (PPACA) small-group health insurance tax credit, according to IRS Notice 2015-08.
PPACA Section 1421 created the tax break by adding Section 45R to the Internal Revenue Code (IRC) 45R.
Now that the PPACA public exchange system is up and running IRC Section 45R requires employers that get the tax credit to use it to pay for qualified health plan (QHP) coverage from a Small Business Health Options Program (SHOP) exchange.
For 2014, the SHOP exchange system had no group plans available for employers in some counties in Wisconsin and most of Washington state.
This year, employers in those counties can buy SHOP plan coverage, but Iowa is a SHOP plan dead zone. Employers in Cedar Rapids, Des Moines and Iowa City can’t get SHOP plans.