2014 Updated: Employer Requirements Under the Affordable Acre Act


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A look into recent updates and insights into the recent 2014 changes and requirements going forward for employers regarding the Affordable Care Act and the ACA. Hear from our expert panelists are they discuss fines, penalties and requirements for companies regarding health benefits and communication for the ACA.

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. Read this prior to discussion: http://b4j.co/npr-aca
  • ►The ACA aims to expand health coverage through a series of provisions that generally go into effect on January 1, 2014: ►Individual mandate: Mandates all Americans, with some exceptions, to maintain a minimum level of health coverage or face a tax. ►Insurance Exchanges: Creates health insurance Exchanges and provides premium tax credits to assist eligible individuals with the purchase of coverage. ►Medicaid expansion: Allows states to expand Medicaid up to 133% of federal poverty level. ►Employer mandate: Mandates employers with 50 or more full-time equivalents to offer coverage to full-time employees and their dependents or pay taxes if an employee obtains Exchange coverage and a premium tax credit.
  • This includes vacation time and time off. Cover this in particular. This is thecalucation that everything is based on.
  • Jess will discuss
  • STEP 1: Employer provides employee information about exchangesSTEP 2: Employer provides exchange information to determine eligibilitySTEP 3: Exchange verifies information & eligibility regarding tax creditSTEP 4: Exchange notifies employer to receive tax credit & Employer has right to appeal employee eligibility within 90 daysSTEP 5: Employer files info with IRS & Employee files personal returnSTEP 6: Assessment of tax penalties & employer has right to appeal tax liability to IRShttp://b4j.co/aca-talk
  • 2015 enrollment window for second year is delayed for 11/15/14 and 1/15/15 allowing for more time to set rates Employee communication is so essential and its important to note that individuals have until 3/31/14 to enroll on the Heathcare.gov site. This should be communicated to employees.
  • http://www.blogging4jobs.com/social-media/hiringrecruiting-on-twitter-facebook-linkedin-by-country/
  • 2014 Updated: Employer Requirements Under the Affordable Acre Act

    1. 1. #blogging4jobs 1
    2. 2. Our Sponsor #blogging4jobs
    3. 3. Get HRCI Recert Credits • Visit http://b4j.com/hrciwebinars & register to get PHR, SPHR & GPHR cert credits free. #blogging4jobs
    4. 4. Our panelists Jessica Miller-Merrell @blogging4jobs Mary Wright @hrgazette #blogging4jobs
    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. #blogging4jobs 5
    6. 6. Important Pieces of ACA Went into effect January 1, 2014 & includes • • • • Individual Mandate Insurance Exchanges Medicaid Expansion Employer mandate #blogging4jobs 6
    7. 7. ACA in the news #blogging4jobs 7
    8. 8. ACA timeline of events Access graphic at http://b4j.co/2014-ACA #blogging4jobs 8
    9. 9. Who is a "Large Employer?” • 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 #blogging4jobs 9
    10. 10. 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 #blogging4jobs 10
    11. 11. 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 • Safe Harbor Provisions #blogging4jobs 11
    12. 12. 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. #blogging4jobs 12
    13. 13. Employer Penalties • They don’t provide any insurance coverage • They provide “unaffordable” or “inadequate” coverage #blogging4jobs 13
    14. 14. Defining inadequate • The cost is 9.5% of the employee’s household income • Minimum Essential Coverage #blogging4jobs 14
    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 #blogging4jobs 15
    16. 16. Calculating penalties • Sledghammer: $2000 times the number of employees for whom you did not offer insurance #blogging4jobs 16
    17. 17. Calculating Penalties Continued • Tackhammer: $3000 times number of employees for whom you provided inadequate insurance AND who then successfully purchased coverage with tax credit.. But that total may never be an amount greater than the amount you would have paid if you had provided no insurance at all (must be less than the amount you would have paid those same folks had you not give them any insurance at all). #blogging4jobs 17
    18. 18. How to Calculate No of Full Time Employees • Count the number of employees work more than 30 or more hours a week • Calculate hours of non-full time equivalent employees including seasonable employees & divide by 120 • Add the number calculated in the 2 bullets above for each of the 12 months in the preceding calendar year. • Add monthly totals and divide by 12. #blogging4jobs 18
    19. 19. Exchanges and employers #blogging4jobs 19
    20. 20. 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 #blogging4jobs 20
    21. 21. 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 #blogging4jobs 21
    22. 22. 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 #blogging4jobs 22
    23. 23. Communication Under the ACA Access graphic at http://b4j.co/aca-talk #blogging4jobs 23
    24. 24. 2014 Changes & Updates • 2015 Enrollment Date Changes • Continuous communication • Open enrollment for Healthcare.gov ends 3/31/14 • Religious groups contraceptive mandate changes #blogging4jobs 24
    25. 25. ACA Timeline of Events Access graphic at http://b4j.co/2014-ACA #blogging4jobs 25
    26. 26. Questions? #blogging4jobs
    27. 27. Learn more about . . . • Mary Wright www.b4j.co/mary-wright • Jessica Miller-Merrell www.b4j.co/JMMbio-12 Other resources: 2015 Enrollment Changes - http://b4j.co/15-aca-chg; ACA timeline of events - http://b4j.co/2014-ACA; ACA Communication Graphic - http://b4j.co/acatalk; NPR ACA article - http://b4j.co/npr-aca; List of states w/ & w/o exchanges http://b4j.co/aca-exchange #blogging4jobs
    28. 28. Get HRCI Recert Credits • Visit http://b4j.com/hrciwebinars & register to get PHR, SPHR & GPHR cert credits free. #blogging4jobs