April 3, 2015
RFR has learned that school districts throughout the state have raised serious concerns that the payment of the flexible benefit allowance by school districts for health insurance premiums to health insurance plans offered by EGID cannot be used to demonstrate affordability under the Affordable Care Act ("ACA"). It is imperative that each school district that is subject to the ACA be able to demonstrate that a group health insurance plan offered by it to its employees is "affordable" under the ACA. Failure to offer "affordable" group health insurance could result in substantial penalties under the ACA. RFR has analyzed this issue and has determined that the FBA may largely be used to demonstrate affordability. Jerry L. Zimmerman, a shareholder with RFR, will be happy to discuss and analyze this issue with the appropriate representatives of RFR's school district clients.