Many employers waited on the election results to begin implementing the health care reform’s requirements—and now many employers are confused about what they need to do to get their business in compliance. If you are one of those employers, there are ways to get yourself “caught up” on the changing healthcare world.
As an employer, the first step is to evaluate your organization’s movement in complying with the health care reform law. If you are one of the many employers who chose to hold off on making plan decisions or preparing to comply with the Health Care Reform laws, you may find yourself needing to catch up on the efforts involved to meet the upcoming requirements.
There is quite a bit that goes into understanding the Patient Protection and Affordable Care Act, and in order to feel comfortable with the upcoming changes, it is important to consider whether you will or will not continue to provide health insurance coverage as a benefit to your employees. As an employer, you may feel that not offering coverage may be the cheaper and easier way to deal with Health Care Reform, but you may be surprised by the outcome of taking this route.
Here are a couple of items to consider when deciding whether you will be offering coverage or not:
- Are you a large group employer? (Do you employ 50 or more full time employees, including full time equivalents?)
- Do you employ more than 30 full time employees? (Employees that work 30 or more hours per week)
- Is your employer-sponsored health insurance coverage deemed unaffordable? (Is the employee’s share of premium more than 9.5% of your employees’ W-2 income or is the plan’s share of the total allowed cost of benefits less than 60 %?)
These questions are essential in determining the strategy you will need to pursue because beginning in 2014, employers with 50 or more full-time equivalent employees may be subject to a penalty tax if they do not offer health care coverage to all full-time employees (and dependents). These employers can also be subject to a penalty if they do offer coverage, but the coverage is unaffordable or does not provide minimum value.
SIA Group has the resources available to guide you through these difficult questions. Contact us today for further clarification on the “Patient Protection and Affordable Care Act.”