ACA Employer Impact Survey |
1. ACA Employer Impact Survey
This is a survey on the impact or potential impact of the Patient Protection and Affordable Care Act (ACA) requirement that certain employers pay a penalty when they do not provide a qualified health plan to employees.
The ACA does not require employers to provide health insurance to employees and employers with fewer than 50 full-time employees from any ACA-related penalties.
However, if an employer of more than 50 full time equivalent (FTE) employees does not provide insurance that meets the criteria of a qualified health plan and just one of its employees qualifies for a subsidy for the purchase of non-group coverage offered in a health insurance exchange, that employer will be required to pay a penalty equivalent to $2000 per full-time employees (minus the first 30 full-time workers).
Subsidies are available to individuals if their incomes fall between 138 and 400 percent of the Federal Poverty Level. In states that do not chose to implement a state health insurance exchange, individuals with incomes as low as 100 percent of the FPL will quality for subsidies. These income levels are likely to encompass most employees of home health providers.
An full-time employee is an individual who works 30 or more hours per week. Tax credits also may be available to certain employers of less than 25 FTEs (defined as number of total hours worked divided by 2080).
If the employer offers a qualified health plan to its employees, the employer will be penalized by the lesser of $3000 for each full-time employee that receives a subsidy or $2000 per full-time employee, (minus the first 30 workers).
The exact content of a “qualified health plan” is not yet determined, but these plans will be required to offer coverage of ten categories of essential health benefits. Indications are that a qualified health plan would be the equivalent to the average type of health insurance that is in place in a state’s small group plan or a plan offered to public employees.
If you have any questions on this survey, contact Bill Dombi at wad@nahc.org.
The ACA does not require employers to provide health insurance to employees and employers with fewer than 50 full-time employees from any ACA-related penalties.
However, if an employer of more than 50 full time equivalent (FTE) employees does not provide insurance that meets the criteria of a qualified health plan and just one of its employees qualifies for a subsidy for the purchase of non-group coverage offered in a health insurance exchange, that employer will be required to pay a penalty equivalent to $2000 per full-time employees (minus the first 30 full-time workers).
Subsidies are available to individuals if their incomes fall between 138 and 400 percent of the Federal Poverty Level. In states that do not chose to implement a state health insurance exchange, individuals with incomes as low as 100 percent of the FPL will quality for subsidies. These income levels are likely to encompass most employees of home health providers.
An full-time employee is an individual who works 30 or more hours per week. Tax credits also may be available to certain employers of less than 25 FTEs (defined as number of total hours worked divided by 2080).
If the employer offers a qualified health plan to its employees, the employer will be penalized by the lesser of $3000 for each full-time employee that receives a subsidy or $2000 per full-time employee, (minus the first 30 workers).
The exact content of a “qualified health plan” is not yet determined, but these plans will be required to offer coverage of ten categories of essential health benefits. Indications are that a qualified health plan would be the equivalent to the average type of health insurance that is in place in a state’s small group plan or a plan offered to public employees.
If you have any questions on this survey, contact Bill Dombi at wad@nahc.org.