Budget bill repeals health reform’s free choice vouchers

The fiscal 2011 federal government funding bill that was signed into law on April 15 contains a provision repealing the requirement under the Affordable Care Act that employers provide “free choice vouchers” to help certain low income workers buy health insurance coverage through state health insurance exchanges (H.R. 1473, P.L.  112-10). This provision was set to take effect on January 1, 2014 and was intended to make exchange coverage affordable for employees with low incomes who were not eligible for federal income-based assistance.  It remains to be seen how this development will affect employers’ strategies for addressing health reforms in 2014. Vigilant will update its members upon future developments or as further guidance is issued.