What Large Business (51+ employees) Employers Need to Know
There are many important distinctions and responsibilities the ACA brings to small group health insurance. Read below to find out about some of the more salient ways healthcare reform affects you, or contact us to schedule a free consultation and learn more about the changes ahead.
Exchange Notice to Employees
- By October 1st, 2013, employer must provide employees with a notice about the new Health Insurance Marketplace, called CoveredCA. Click here for Model Notice which explains health insurance marketplace options and addresses eligible tax subsidies for employees.
- Does Employer group health coverage affect an Employee's eligibility for tax subsidy through the new Marketplace? Yes. The employee is NOT eligible for any subsidy through the Marketplace if:
- The employer offers coverage that meet the minimum value standard
- AND the employee does not pay more than 9.5% of his/her monthly income toward his/her own medical premium, not including dependents.
- What is the purpose of the Exchange Notice? This notice helps employees determine whether or not they are eligible for a tax subsidy through CoveredCA.
Pay or Play Option
- Delayed until January 1, 2015, any Large Business that does not provide affordable health insurance that meets the minimum value standard will have to pay a fine (appx. $3,000) for each employee that chooses to seek insurance through the CoveredCA Exchange.
- If a Large Business decides to not offer coverage at all, they must provide a subsidy (appx. $2,000) to each employee.
Tax Implications
- Two ACA Taxes on Businesses will result in a total tax of 3.4% being built into medical premiums. If your group's renewal date is January 1, 2014, your renewal rate will reflect this 3.4% increase. For all other groups, this increase would have taken place during your 2013 renewal.
- Self-funded customers are responsible for remitting the tax to the government.
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