The Inside Scoop on the Affordable Care Act for Employers Today

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The affordable care act or ACA is impacting employers and businesses different ways. Hear from our experts how the specifics of the ACA when it comes to offering health insurance the communication required and other obligations employers have or face hefty penalties.

This webinar is eligible for HRCI recertification credit. Visit http://b4j.com/hrciwebinars & register to get PHR, SPHR & GPHR cert credits free.

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  • Signed into law March 23, 2010 and is the most significant regulatory overhaul of US health system since the passage of Medicade in 1965. IMO most complex law impacting employers since the Americans with Disabilities Act went into effect into 1990.
  • This includes vacation time and time off. Cover this in particular. This is thecalucation that everything is based on.
  • To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have fewer than 25 full-time equivalent employees (FTEs). Those employees must have average wages of less than $50,000 a year.
  • http://www.blogging4jobs.com/social-media/hiringrecruiting-on-twitter-facebook-linkedin-by-country/
  • The Inside Scoop on the Affordable Care Act for Employers Today

    1. 1. Presented by #hrsolutions
    2. 2. Get HRCI Recert Credits • Visit http://b4j.com/hrciwebinars & register to get PHR, SPHR & GPHR cert credits free. #hrsolutions
    3. 3. Our panelists Jessica Miller-Merrell Randy Peck @blogging4jobs Dir Software Strategy Mike Haberman @mikehaberman #hrsolutions
    4. 4. Message from the moderator Jessica Miller-Merrell @blogging4jobs #hrsolutions
    5. 5. 1200 pages of legislation • • Employer Mandate and Employer responsibilities Individual Mandate This a complex law with over 1200 pages of legislation and many more pages of regulation. We are giving an overview and nothing should be construed as legal advice. #hrsolutions
    6. 6. ACA in the news #hrsolutions
    7. 7. ACA timeline of events #hrsolutions
    8. 8. Legislation key points • Employers with 50 or more FTEs • Fulltime employees (30 or more hours per wk) • The monthly sum of hours of employees working less than 30 hours per week divided by 120. • Added together if the total is 50 or more the employer is covered • Includes working hours & compensated hours #hrsolutions
    9. 9. Legislation key points • Offer “Affordable” Insurance to full-time employees or pay a penalty • Provide written notice to employees at time of hiring of what is provided (this notice must be provided to current employees by March 1, 2013) • Provide W-2s with insurance values • As of 2014, make annual reports to the Secretary of the Treasury (more later) #hrsolutions
    10. 10. What “affordable” means “Affordable” insurance is deemed affordable if : • The cost of coverage for employeeonly coverage is no more than 9.5% of the employee‟s household W-2 income • The insurance covers 60% or more of the actuarial cost of the healthcare #hrsolutions
    11. 11. Key points • Employers are NOT required to pay 100% of the cost of coverage • Employees can be required to contribute to the cost of coverage in increasing amounts based on increased income • Employees can be required to pay the full cost of dependent coverage • Large employers are only required to OFFER coverage and there is no penalty if the employee declines. #hrsolutions
    12. 12. Message from Mike Mike Haberman @mikehaberman #hrsolutions
    13. 13. Employer Penalties • They don‟t provide any insurance coverage • They provide “unaffordable” or “inadequate” coverage #hrsolutions
    14. 14. Defining inadequate • The cost is 9.5% of the employee‟s household income • Insurance doesn‟t cover at least 60% of health costs • At least one employee receives a tax credit or subsidy to purchase insurance through an exchange #hrsolutions
    15. 15. Employer penalties The penalty is the lesser of: • $2000 x the total number of full-time employees • Or $3000 X #full-time employees who receive a tax credit or subsidy and purchase through an exchange #hrsolutions
    16. 16. Calculating penalties An employer has 100 FTEs of which 65 are full-time employees. They only offer insurance that covers 50% of coverage. Ten employees qualify for a tax credit or subsidy because they have incomes that are below $44,680 (400% of the Federal Poverty Level) 10 X $3000 = $30,000 fine #hrsolutions
    17. 17. Exchanges and employers • Exchanges determine if individuals are eligible • Exchanges notify employers of full-time employees who qualify for subsidy or credit • If employees have adequate coverage they will NOT qualify for the subsidy • If assessed a penalty employers can appeal #hrsolutions
    18. 18. Automatic enrollment • Employers with 200 or more FTEs must automatically enroll all new full-time employees in one of their employersponsored plans • Employees not wanting insurance must opt out #hrsolutions
    19. 19. Information return In 2014 employers must file reports with the Secretary of the Treasury detailing: • • • • Whether or not they offer insurance Details of the plans if they do Costs of the plans # of employees with full identification Additionally a full report must be supplied to each employee named in the report #hrsolutions
    20. 20. “Hidden” taxes #hrsolutions
    21. 21. Hidden taxes: PCORI Patient-Centered Outcomes Research Institute (PCORI) • Established to assist patients, policymakers in making informed health • Fee determined by multiplying average number of covered lives for the plan year times $1 in the year 2013 and $2 for second year, „14 • Fees after that will be readjusted as needed. Fees are due each July 31st #hrsolutions
    22. 22. Hidden taxes: TRP Transitional Reinsurance Program (TRP) • Fee to fund Exchanges in transition period of 3 years • Includes lives covered like employees, spouses, dependents • Also domestic partners who are covered • Fee of $63 per covered life • Begins 2014 & paid by Dec 31, 2014, „15 & „16 #hrsolutions
    23. 23. Individual mandate Employers must educate employees not covered or do not provide: • Each person must maintain minimum essential coverage for themselves and dependents. • If they don‟t they are assessed a tax 2014 $95 / year 1% of income 2015 $325/ year 2% of income 2016 $695/ year 2.5% of income #hrsolutions
    24. 24. Special mandate provisions If the an individual is under 18 years old the cost is 50% of the tax. The amount of the tax is capped at 3 times the annual amount. #hrsolutions
    25. 25. How to calculate individual tax Family of Three Father Makes $60,000 & Mother makes $40,000 Child 12 years old In 2016 
$695 for father $695 for mother $347.50 for child Total tax $1,737.50 Or 2.5% of Income In this example $100,000 X 2.5%= $2500 Their tax would be $2500 annually paid on monthly basis. #hrsolutions
    26. 26. Tax incentives for small employers • 2010-2013 Maximum Tax Incentives • 35% for small business employer • 25% for small tax-exempt employers & charities • 2014 Tax Incentives • 50% for small business employer • 35% for small tax exempt employers & charities Visit IRS.gov for more information #hrsolutions
    27. 27. Tax incentive eligibility • Cover at least 50% of the cost of single (not family) health care coverage for each of your employees. • Have fewer than 25 FTEs • Employees must have average wages of less than $50,000 a year #hrsolutions
    28. 28. Key points • Employers are NOT required to pay 100% of the cost of coverage • Employees can be required to contribute to the cost of coverage in increasing amounts based on increased income • Employees can be required to pay the full cost of dependent coverage • Large employers are only required to OFFER coverage and there is no penalty if the employee declines. #hrsolutions
    29. 29. Questions? #hrsolutions
    30. 30. Get HRCI Recert Credits • Visit http://b4j.com/hrciwebinars & register to get PHR, SPHR & GPHR cert credits free. #hrsolutions
    31. 31. Learn more about . . . • Mike Haberman www.b4j.co/OmegaHR • Randy Peck www.b4j.co/randy-peck • Jessica Miller-Merrell www.b4j.co/JMMbio-12 Other resources: IRS.gov, www.b4j.co/ACA-timeline, www.b4j.co/aca-w2, www.b4j.co/PPACA-timeline #hrsolutions

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