Important Information
The Affordable Care Act and You ACA Compliant Medical Plans The Affordable Care Act (ACA) establishes several medical standards aimed at improving healthcare quality and accessibility. All the medical plans offered meet these standards. California Individual Mandate Bill Text - SB-78 Health. (ca.gov) effective January 1, 2020, a state individual mandate that requires California residents to maintain acceptable health coverage or pay a penalty. Federal Individual Mandate: The Federal Individual Mandate, the Affordable Care Act (ACA) requirement that nearly every American be enrolled in medical coverage or pay a penalty, has been repealed effective in 2019 .
The Health Insurance Marketplace Because Inline Distributing Company medical plans are considered affordable and meet minimum value under Health Care Reform, you will not generally see lower premiums or out- of-pocket costs through the Marketplace. In addition, employer contributions to your medical benefits will be lost if you choose to purchase coverage through the Marketplace, and your portion of medical premiums will no longer be paid via payroll deductions. For more information on your coverage options, please visit Still need health insurance? | HealthCare.gov.
Section 125 “Cafeteria Plan” The Section 125 “Cafeteria Plan” is just a document that describes the specific ways in which the employer is allowing employees to take advantage of pre-tax deduction options. Section 125 is the section of the IRS tax code where the items that can be deducted from employee pay on a pre-tax basis are defined. In the context of Section 125, “pre-tax” means that a deduction is exempt from Federal Income Tax Withholding, Social Security and Medicare Taxes. Employers may deduct the employee’s portion of the company- sponsored insurance premium directly from said employee’s paycheck before taxes are deducted .
Benefits Guide 2025-26 3
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