Category: Employer Mandate
Health Care Reform and the Employer Mandate
When President Obama signed into law the Patient Protection and Affordable Care Act, his administration required an employer mandate to offer healthcare coverage to employees. Like any good debate, there are solid pros and cons for and against such a requirement.
Prior to the act, the U.S. healthcare system imposed a heavy tax on small businesses and their employees. Fixed administrative costs, broker fees, adverse selection, and more forced these businesses to pay up to 18 percent more per worker than large firms for the same insurance policy. This often led to a reduced workforce, lower wages, and smaller profits.
Requiring all companies, both large and small, to carry insurance for employees is thought to level out the playing field. The employer mandate gives employers that pay at least 50 percent of their employee’s contributions the ability to write off their insurance payouts by 35 percent. In 2014, that same write off increases to 50 percent. With the money saved, many employers say they can attract better employees, which builds their business and adds back to the economy. Some plan to pool resources to help negotiate better prices on insurance plans.
Many other employers, however, say that if they are forced to offer insurance, the cost will eat into their profits, reduce wages, and decrease the size of their workforce. Furthermore, they will likely be able to offer only barebones insurance, meaning employees won’t get the quality insurance they need. Some employees are also worried that the cost for prescriptions or medical devices will increase, thus costing their employees more in the long run.
As the debate continues, turn to HealthReform.com for the latest information on health care reform and the employer mandate.
from HR360 Recently issued final rules provide important guidance on the ‘pay or play’ provisions under Health Care Reform. These provisions require large employers–generally those with at least 50 full-time employees, including full-time equivalents–to offer affordable health insurance that provides a minimum level of coverage to full-time employees (and their dependents), or pay a penalty tax if any full-time employee receives a premium tax credit for purchasing individual coverage on a Health Insurance Marketplace. Below are… Continue reading
I guess delays have come to be expected with Health Reform. Well, on February 10, 2014, the Internal Revenue Service released the final employer responsibility rule, together with a fact sheet and a series of questions and answers about the rule. The rule finalizes rules proposed late in December 2012. Although the rule contains a number of transition provisions, three provisions seem to be getting the most attention – for good reason. The rule postpones until 2016 the application… Continue reading
By October 1, 2013, EVERY employer (1 employee and up) must provide employees written notice about the new health care Exchanges. The ability for the employee to afford coverage in the Exchange will vary based on a number of factors and generate many new questions from employees. Will you be prepared to answer these employee questions: – Will I be eligible for insurance on the Exchange? – How does our group plan (if one is… Continue reading
On Wednesday July 17, the House of Representatives voted for further delays in the current administration’s Health Care Reform. In addition to a delay in the employer mandate the individual mandate is now under discussion. President Barack Obama responded, saying. “Despite all the evidence that the law is working the way it was supposed to for middle class Americans, Republicans in the House of Representatives voted, for nearly the 40th time, to dismantle it.” New… Continue reading
The implementation of the employer mandate provision of the Affordable Care Act was pushed back from 2014 to 2015, and now the individual mandate is at risk of being delayed as well. The mandate, which would require that individuals buy health insurance or pay a penalty, is set to go into effect in 2014. However, after the White House’s decision to hold off requiring businesses with 50 or more full-time workers provide insurance, House Speaker… Continue reading
The Affordable Care Act was launched in 2010, and while it never had a formal start date, the Obama administration has announced that the implementation of one key provision will be delayed until 2015. That delayed provision, known as the “employer mandate,” requires that any business with more than 50 employees must provide affordable health insurance coverage or pay a penalty. This delay will give administrators on both the business and government ends time to… Continue reading
The current administration is delaying one of the crucial mandates of the new health care reform law, allowing businesses an extra year to comply with the employer mandate, which requires them to provide their workers with affordable insurance. The companies with 50 or more workers that are not compliant with the law will be charged a fine of up to $3,000 per employee. This aspect of health reform was to be set in motion in… Continue reading
As the nation continues to move toward massive changes in health care policy, certain government bodies are responsible for different aspects of the legislation and implementation. The Internal Revenue Service has a particularly significant role because the Affordable Care Act (ACA) contains the largest set of tax provisions and law changes in over two decades. Many supporters claim that it only makes sense to ensure the IRS helps oversee implementation of 500 new provisions and… Continue reading
Employers and employees are justifiably curious about how the Affordable Care Act will affect coverage, insurance rates, premiums, and other aspects of healthcare. Designed to help individuals and families choose the health care product that is right for their needs, the Marketplace is a robust and comprehensive one-stop-shop for health insurance needs. Proponents of this model hope that the hassle of reviewing eligibility and plans will be eliminated and that easy comparisons will be made… Continue reading
With changes in the administration of healthcare coverage and benefits, many employers are left wondering how they will be affected in 2014. Regulations involving a new employer mandate will require shared responsibility for full-time employees and reasonable minimum value health insurance coverage. While this regulation will affect companies that have more than 50 full-time or equivalent employees, some organizations may wonder how they can restructure their organization to avoid these new Affordable Care Act (ACA)… Continue reading