Trust the Experts at NPPG
It takes constant dedication to keep up with the countless rules and regulations governing employee benefit plans and the newest health care reform regulations. National Professional Planning Group, Inc. is committed to helping clients stay up to date and informed about complex plan administration and legislative obligations, and has the resources necessary to ensure that you are prepared, informed and in compliance with any laws or regulations that may affect your employee benefit program.
NPPG Helps Employers Design Their Health Benefits to Comply with the ACA
The ACA was signed into law by President Obama in March 2010 to reform the healthcare industry and health care system. The goals of the ACA are to increase the number of insured and to increase the quality of care while trying to stabilize or reduce costs.
The Affordable Care Act contains a series of provisions aimed at expanding access to affordable quality health care and giving individuals more rights and protections. The major provisions include the creation of insurance exchanges, Medicaid expansion, and mandated coverage for individuals and employers or face a penalty. Below is a brief overview of the mandated coverage provisions which will impact almost all individuals and many employers.
The individual mandate requires all Americans, with some exceptions, to maintain a minimum level of health coverage or pay a tax penalty. The insurance exchanges were created to assist individuals with the purchase of coverage and provide premium tax credits or cost-sharing subsidies for individuals that meet certain criteria.
It is very important that employers understand the implications of the Affordable Care Act as well as the risk exposure. Failure to comply with the ACA could result in heavy penalties for employers.
The Employer mandate is part of the Employer Shared Responsibility provision of the ACA, commonly known as Employer Play or Pay. The mandate does not require all businesses to provide health benefits. However, businesses with 50+ full-time employees must offer affordable health coverage that meets minimum levels or they will be subject to a penalty. The penalty is triggered if one employee obtains coverage through the exchange and qualifies for a premium tax credit or a cost-sharing subsidy.
The mandate also requires employers to report to the IRS and to all full-time employees about the coverage they provided.