What Small Business (2-49 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. If you are currently a Stacy Hering Astor & Associates CORPORATE INSURANCE client, we will be guiding you through this process.

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.
Tax Implications
  • The Small Business Tax Credit allows businesses with under 25 employees who qualify (average annual salary approximately $50k) to receive a tax credit of up to 35% of the employers' contribution to insurance benefits, including dental and vision. More details to follow.
  • Two ACA Taxes on Small Businesses will result in a total tax of 3.4% being built into medical premiums, beginning January 1, 2014. This percentage is expected to increase slightly each year.
Early Renewal to Avoid Business Disruption - Must Evaluate for Mid-October Submission!
  • Effective January 1, 2014, insurance plans & doctor and hospital networks will change significantly. To minimize disruption to your employees, you may delay the ACA's impact on your company until December 1, 2014 by applying for Early Renewal through your insurance carrier. For some carriers, the deadline is as early as October 1, 2013, so contact us today to learn more!
SHOP Exchange
  • CoveredCA, the new insurance marketplace, will have a small business arm known as the "Small Business Health Options Program" or SHOP.
  • Employers who meet criteria for a tax credit should consider SHOP's open enrollment period, beginnning November 1, 2013, and extending through March 31, 2014.
  • Employers may continue to purchase coverage directly from private carriers (Blue Shield, Anthem, Kaiser, etc.) as they have the same mirror plans and rates as the SHOP, along with alternate plan options.
  • For assistance with SHOP or purchasing insurance through the carriers, contact Stacy Hering Astor & Associates.


© Copyright 2013, Stacy Hering Astor & Associates. All rights reserved.
The information on this page is intended only as a summary of plan benefits.
All plan summaries were prepared by the insurance carriers and obtained from their respective websites.
None of the information in this website constitutes an insurance policy or a promise of coverage.
Please refer to the insurance policy and benefit booklet provided by the carrier for a complete description of coverage and benefits.