ACA compliant health insurance for part-time Executives

[Clare]

We have three senior executives that are part-time and don't work enough hours to be eligible for the GHP. Two are actually on Medicare. We would like to somehow help pay for the health insurance or medigap coverage they have obtained elsewhere. We realize that direct reimbursement creates an employer payment plan that runs afoul of the ACA. Any ideas? It is my understanding we could increase their taxable wages to help them pay for these individual insurance policies and/or medigap coverage, but that we can't require that the funds be used for that purpose. However, we would want to determine the amount of the increase by doing some research on how much this alternative insurance is costing and base the compensation adjustment on our findings. Would that pass muster?

[Flyboyjohn]

Yes you're free to determine extra taxable wages in any manner you choose.

[Luke Bailey]

Flybyjohn, don't you think there is a risk of having an employer payment plan if you determine the extra taxable wages by whether they were used to pay premiums?

[Flyboyjohn]

Yes if the employer is requiring proof that the extra wages are being used to pay premiums but not if the employer is simply determining the amount of the extra wages on the basis of what the executive is "probably" paying in premiums.

[Luke Bailey]

Yep. The old "facts and circumstances," Flyboyjohn.