HEALTHCARE ALERT: Employer Mandate Delayed Again

HEALTHCARE ALERT: Employer Mandate Delayed Again

Certain provisions of the Affordable Care Act (ACA) have been delayed in order to make the “…compliance process simpler and easier to navigate,” said Assistant Secretary for Tax Policy Mark J. Mazur on 2/10/14. Employers have more time to comply with rules requiring them to provide affordable health insurance for their workers.
DETAILS OF THE DELAY
  • Mid-sized companies (50-99 full-time employees)now have until 2016, one extra year, to provide affordable coverage for employees under the ACA.
  • Larger companies (100+ employees) must offer affordable coverage to 70% of their workers, rather than 95%, by 2015. The 95% threshold goes into effect in 2016.
  • Small companies (less than 50 employees), are not subject to the employer mandate of the ACA.
  • This delay does NOT impact the requirement of individuals to obtain insurance this year, whether their employer offers it or not.
QUESTIONS
  • Do ALL of your employees count toward the head count?
  • Do you know what the penalties are?
  • Do you know what the threshold is for % of individual employee income vs. insurance premiums?
  • Employer certification for less than 100 workers…what does this mean?

ANSWERS

  • Volunteers and seasonal workers, employed for 6 months or less, do NOT count toward headcount for employer coverage.
    • Teachers and other school employees DO count toward headcount for employer coverage.
  • Companies that do NOT provide insurance coverage to eligible employees will be fined $2000 per employee.
  • Employers will be subject to a $3000 penalty (per employee) if they do NOT provide affordable coverage AND their employee purchases a subsidized plan from the individual federal or state healthcare exchange.
  • Employers must certify they have not fired workers (to fall under 100 or less employees) in order to qualify for the 2016 delay.
  • Employers must also certify that they will not drop health insurance plans that they already offer.
  • Affordable insurance definition: a worker does not have to spend more than 9.5% of his/her income on premiums for employee-only coverage.
    • ACA does not take into consideration affordable coverage for an employee’s family.

MORE QUESTIONS?

FosterThomas HR specialists are here to listen and help. Contact us today to help you navigate the ever-changing healthcare and employee benefit landscape.

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FosterThomas is a leading professional services company that provides solutions in the areas of Human Resources Consulting and Outsourcing, HR Staffing, Outsourced Recruiting, Employee Benefits Brokerage, Payroll Implementation and Services, HR for Government Contractors, Business Insurance, HR Compliance and Risk Management. We help organizations by providing solutions designed with a focus on cost containment strategies and increasing HR efficiency. FosterThomas HR Consulting was established in 1993 with offices in Annapolis, Maryland (Corporate), McLean, Virginia and Raleigh, North Carolina. Today, FosterThomas occupies a unique position as a full service provider of HR services.

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