Employers, How Prepared Are You?
THE IMPACT OF THE PATIENT PROTECTION & AFFORDABLE CARE ACT
Important Dates to Remember:
NOW – Tax credits are available for employers who provide health insurance for fewer than 25 employees.
Summary of Benefits and Coverage: We are now required to provide a 4 page double sided Summary of Benefits and Coverage (SBC) in 12 point font to plan participants for initial and open enrollment for plan years commencing on or after Sept. 23, 2012.
The SBC will disclose expanded ERISA requirements, outline the 60 day advance notice requirement for material modifications, provides a uniform glossary of standard insurance and medical terms, and describes the group health plan’s coverage and limitations.
Women’s Preventative Health Care Services Mandate: Non-grandfathered group health plans and individual policies are required to cover women’s preventative health care services without charging a copayment, a deductible or coinsurance for plan or policy years beginning on or after August 1, 2012.
Wellness Programs in Insurance: Expands the ability of employers to reward workers who achieve health improvement goals by permitting employers to potentially offer employees rewards of between 30%-50% of the cost of coverage for participating in a wellness program and meeting certain health-related standards effective January 2012.
December 31, 2013 – Employers who issue more than 250 W-2s must report employee health insurance on 2012 W-2s.
December 31, 2013 – All employers are required to report employee health insurance on 2013 W-2s.
January 1, 2013 – Employers must withhold Medicare tax of 2.35% when an employee’s earnings exceed $200,000.
The employer match remains at 1.45%.
Health insurance executives are limited to annual compensation of $500,000.
Flexible Spending Account Limits: For plans starting January 1. 2013, you will be limited in the amount of salary reduction contributions to a flexible spending account (FSA) for medical expenses to $2,500 per year.
Notifications regarding Exchanges: Effective March 1, 2013, employers will be required to provide a notice to their employees regarding the availability of the insurance exchanges
January 1, 2014 All employers who employ 50 or more full-time equivalent employees will be assessed penalties if they do not provide essential, affordable health insurance to all full- time employees.
To avoid the penalty of $2,000 per full- time employee beyond the first 30 employees, employers must offer a health plan that meets minimum acceptable requirements.
Penalties kick in if at least one employee receives subsidized coverage through the premium tax credit on the state exchange.
To avoid the penalty of $3,000 per year for each full- time employee who seeks subsidized coverage through the exchanges, an employer must offer coverage which costs the employee not more than 9.5% of household income.