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Unfortunately the transfer of the funds to Mutual of Omaha would be seen as a cash payment for your health insurance. This would violate PHS Act sections 2711 and 2713, among other provisions, which can trigger penalties such as excise taxes under section 4980D of the Code.
Under the Departments' prior published guidance, the cash arrangement fails to comply with the market reforms because the cash payment cannot be integrated with an individual market policy.
The arrangement is group health plan coverage within the meaning of Code section 9832(a), Employee Retirement Income Security Act (ERISA) section 733(a) and PHS Act section 2791(a), and is subject to the market reform provisions of the Affordable Care Act applicable to group health plans.
I do wish I could tell you differently as I am certain the $2000 would be helpful to you.
I know you wanted to hear a different response but if my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.
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