LAUNCH OF MOSAIC SECTION 125 VOLUNTARY PROGRAM DELAYED

10/23/2013

Due to recent IRS guidance, the launch of the Mosaic Section 125 Voluntary Program (Mosaic) has been delayed until further clarification. IRS Notice 2013-54 discusses the validity of employer payment plans including the Massachusetts Voluntary Plan Program. A provision in the Patient Protection and Affordable Care Act (PPACA) prohibits the purchase of health insurance on a pre-tax basis through a health insurance Marketplace like the Massachusetts Health Connector. However, under Massachusetts law, employers with 11 or more full-time equivalent employees must make a Section 125 Plan available to all employees to pay for health insurance on a pre-tax basis, even for employees that are not eligible for the employer’s group health plan.

Mosaic is a private exchange solution for employers looking to comply with the Massachusetts Section 125 Plan requirement and will mirror the Health Connector’s Voluntary Program. Although the start of Mosaic has been delayed, applications are being accepted and payments will be processed once the IRS releases additional guidance.

For more information on Mosaic, visit: http://www.mosaicix.com/section125.html.