Health Care Reform Confusion: 6 Common Questions
Health care reform continues to carry its front-runner status of hot topics weighing on business owners’ minds. As we move forward in 2013, there seem to be more questions than answers for employers grappling with this confusing legislation. As new guidelines attempting to clarify the law are made available, more questions arise.
Below are answers to 6 common health care reform questions.
Q1: What information is required to be included on an employee’s W2?
A: The Affordable Care Act (ACA) requires that employers report on the W2 the worth of health plan coverage for every employee. This includes both the employer and employee share of the value of health coverage, but excludes dental and vision coverage under separate policies. Reportable amounts also exclude contribution towards Health savings Accounts (HSA) and employee contributions to health flexible accounts (Health FSA)
Q2: If a corporation has but 50 employees, is there a penalty for not providing insurance?
A: There are not any penalties for employers with but 50 full time equivalent employees.
Q3: Regarding the Cadillac Tax: If a firm features a high-risk pool of insureds, does that mean they need “Cadillac plans” albeit they’re offering “bronze” coverage?
A: Yes, supported current guidelines, the Cadillac tax is predicated on the worth of the health plan and doesn’t adjust that value for older age or higher risk groups.
Q4: How will Health Care Reform affect staffing companies?
A: Staffing companies are going to be treated because the employer and can be subject to PPACA requirements. Temporary employees for the staffing company are going to be treated as an employees of the staffing company. If the staffing company has quite 50 full time equivalent employees they’re going to be subject to the lager employer mandate and penalties.
Q5: If a company’s health benefits period is Dec 1 – Nov 30, is it correct to assume that compliance wouldn’t be required until 12/1/14?
A: Yes. supported guidelines issued on January 2, 2013, most employers that provide benefit plans and have an idea anniversary aside from Jan 1st are going to be required to be compliant with PPACA provision on their plan anniversary after Jan 1, 2014. If an employer is merely offering benefits to alittle number of employees, they’ll be required to be complaint on January 1. 2013. Federal Register Vol 78 and No 1 provide additional detail.
Q6: If you simply offer an HSA and therefore the employer isn’t making any contribution, will the employer need to pay a penalty since they’re not contributing to the insurance?
A: An employer sponsored high deductible health plan with a health bank account will need to meet the “affordable” test. that might require a 60% actuarial value and an employee premium less than 9.5% of income to avoid the $3,000 penalty. this is applicable if an employee purchases coverage on the exchange and is eligible for a premium subsidy.
These are just a couple of common questions on the Affordable Care Act. If you need additional information regarding any 2013 health care reform questions, don’t hesitate to contact us.
Ari is that the Director of selling at CPEhr, a number one l. a. based Human Resources services consulting company . CPEhr focuses on providing and managing medical insurance for little business, along side an array of comprehensive HR services for little employers. With 15,000 serviced employees nationwide, CPEhr is one among the most important privately-held PEOs within the nation.