The Tax Cuts and Jobs Act signed into law last year wiped out the federal penalty for not having health insurance (a.k.a. the Individual Mandate) starting in 2019. Some state officials are concerned that the elimination of the penalty could destabilize their local insurance markets, and they have responded with their own Individual Mandate requirements.

As a benefits professional, you know that navigating the benefits industry can sometimes be a tricky endeavor. Let’s face it; employee benefits can be confusing—even for those of us who deal with this stuff for a living. Whether you’re a Human Resource Manager, an insurance agent or benefits consultant, people are counting on you to have all the answers. Flex is here to make sure you get them.

The Tax Cuts and Jobs Act, also known as the Tax Act, was signed into law on December 22, 2017. The Tax Act makes several changes to the existing tax code, including the repeal of the Individual Mandate (kind of, sort of). The Individual Mandate was not literally repealed by the Tax Act, but the penalty for failing to have minimum essential coverage (e.g., health insurance) has been reduced to $0 starting on January 1, 2019. This is effectively the equivalent of repeal; however, the Individual Mandate will still be applicable for the 2017 and 2018 tax years. This change to the Individual Mandate has spurred numerous questions and/or speculations, including: