The Obamacare 2015 employer mandate becomes effective on January 15, and your business should be taking the necessary measures to offer the appropriate options to your employees. Keep yourself updated on the recent changes to health care requirements to better manage your business.
- To refresh your memory, a full time employee works an average of 30+ hours per week. Two part-time employees whose hours add up to 30+ a week equal one full time equivalent employee.
- Businesses with 100+ full time equivalent employees must provide health benefits to at least 70% of their employees. In 2016, this percentage is increased to include 95% of your employees.
- Otherwise, your business must pay $2,000 annually per employee as a penalty, exempting the first 30 employees.
- The IRS website, www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions , has more extensive details.
- Subsidies, or financial support from the government, are granted to businesses with the following qualifications: containing 25 or fewer full time equivalent employees, paying below $50,000 in average annual wages, and are covering at least half of the premium cost for employee health insurance.
- To lower the number of employees you are required to cover, encourage lower wage workers who are eligible to apply for Medicaid. See if your state is approved for Medicaid expansion. www.advisory.com/daily-briefing/resources/primers/medicaidmap
- As a small business, you can shop for insurance plans either directly through an insurance broker, or through a state or federal SHOP exchange found now online at Healthcare.gov
- SHOP stands for Small business Health Option Program, and is both a state and federally run exchange allowing small businesses and individuals to shop for government health insurance.
- Be wary that buying insurance for your employees through SHOP may limit you to choosing one plan for all your employees. There are only 14 states that allow you to choose specific plans for each particular employee, and networks of doctors and hospitals may be limited.
Feel free to reach out to ERM Insurance at (949) 222-0444 if you have any questions or concerns about the new healthcare laws. Experts are here to help you!
Serving Orange County and Los Angeles