The Rise of State Individual Mandates - January 2022

As of 2019, the Tax Cut and Jobs Act of 2017 reduced the ACA’s individual mandate penalty to $0. In reaction, several states and the District of Columbia have enacted their own ACA-style individual mandates requiring taxpayers to provide proof of health coverage to avoid financial penalties.

Employers should note that the reporting and penalty requirements under the individual mandates for California, the District of Columbia, New Jersey, and Rhode Island apply to employers covering their residents under health coverage even when the employer does not maintain a physical presence, employ employees, or otherwise do business in the state.

You can download our guide to understand the obligations for employers sponsoring group medical coverage and review the information currently available for the 2021 reporting year.