As Health Care Reform makes its way through the health insurance landscape, many employers are finding it difficult to keep up. Unfortunately, the size and complexity of the Affordable Care Act (Act) doesn’t help. Nevertheless, a general understanding of the Act’s more significant provisions can help employers adjust to past changes and prepare for future ones.
Since numbers play a big part in determining how the Act will impact a particular employer, here are some figures that employers can use to see where they fit in the big picture.
0 Number of employers explicitly required by the Act to offer employee health care coverage
50 Number of full-time equivalent employees required to trigger the Act’s tax on employers
$2,000 Annual tax large employers must pay for each full-time employee (in excess of 30) if the employer does not offer health benefits to its employees
$3,000 Annual tax that large employers must pay for each full-time employee receiving a credit for purchasing health insurance from an Exchange if the employer offers health benefits to its employees
30 Average number of hours an employee must work to be considered a full time employee for purposes of determining large employer status
$0 Annual tax that large employers must pay for each part-time employee, regardless of whether the employer offers health coverage to employees
85% Minimum percentage of premium revenue that a large group health insurance issuer must spend on health care claims and quality improvement to avoid issuing a rebate to enrollees
80% Minimum percentage of premium revenue that a small group or individual market health insurance issuer must spend on health care claims and quality improvement to avoid issuing a rebate to enrollees
200 Maximum number of full-time employees that an employer may have before the Act’s automatic enrollment requirement is triggered
9.5% Maximum percentage of employee’s household income that the employee’s self-only health plan contribution may be to qualify as affordable under the Act
60% Minimum percentage of costs that must be covered by an employer’s health plan to be considered adequate under the Act
249 Maximum number of W-2 Forms an employer may file during the previous calendar year to avoid reporting the cost of coverage under an employer-sponsored group health plan on Form W-2
35% Maximum tax credit available to eligible small employers through 2013
24 Maximum number of full-time equivalent employees an employer may have to be eligible for the Act’s small employer tax credits
$49,999 Maximum average annual wages an employer may pay to be eligible for the Act’s small employer tax credits
50% Minimum percentage of employees’ premium cost for single (not family) health care coverage an employer must pay to be eligible for the Act’s small employer tax credits
100 Maximum number of employees an employer may have to be eligible to purchase insurance through Small Business Health Options Program (SHOP) Exchanges
TBD Number of newly insured Americans
TBD Affordability of health insurance under the Act
TBD Effect of Act’s provisions on employers and employees
At Setnor Byer Insurance & Risk, we are committed to guiding you through what is sure to be a bumpy ride. Check back with us periodically for future informational updates. If you have specific questions about the Act or if you are ready to take action and would like to see how Setnor Byer Insurance & Risk can help, contact us.