1. Small Business Healthcare under the PPACA
Full Presentation is Available at: http://www.slideshare.net/tasinquefield
What parts of the PPACA do not apply to small businesses?
Small businesses are not required to follow the cost sharing provisions (employee mandate).
Do not have to offer insurance to full‐time employees—employees working 30 or more hours per week.
Do not have to offer coverage that meets the minimum essential coverage requirements in terms of value and affordability.
Not subject to penalties for failing to meet the requirements of the health care reform law.
So, what DOES apply to small businesses?
Must provide exchange notices to all employees in the Fall of 2013—however, what the notices must contain and the format of the
notices are still not known.
If you offer health insurance, you must provide the new Summary of Benefits and Coverage to all employees at least on an annual
basis. If you are fully insurance (i.e. purchase insurance through an outside company), this is generated and sent out by the
insurance provider.
Must meet the requirements of the PPACA concerning the types of services offered, including contraceptive and prevantive care.
Comply with non‐discrimination testing rules for all insurance plans—implementation date TBD.
Comply with new limits for high deductible health plans (HDHPs):
 $3,250 / $6,450 maximum annual contribution limit—total for employee and employer combined
 $1,250 / $2,500 minimum annual deductible to qualify for HDHP
 Maximum out‐of‐pocket annual cost (co‐pays and deductibles) of $6,250 / $12,500
Cannot have deductible amounts of more than $2,000 / $4,000 starting in 2014 for small market plans, unless employer
contributions are made to offset the higher costs.
Cannot have a waiting period of more than 90 days for coverage to be effective after an employee becomes eligible.
Options for reducing costs for small business health insurance?
Your company may be eligible for a small business health insurance tax credit, dependant on number of employees and average
salary.
May be eligible to purchase small business health insurance through the new government exchanges, but the costs and options are
not known at this time.
May be eligible to purchase small business health insurance through private insurance exchanges, such as the one established by
AON, which helps employees control their annual costs and provides more options for insurance to employees.
Last Updated: 4/19/2013
For more information contact:
Travis A. Sinquefield, PHR
4575 Lake Michigan Dr NW
Grand Rapids, MI 49534
Office: (616) 735‐3088
Email: traviss@hscompanies.com