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Health Reform

The health insurance broker that knows reform

The 2010 Patient Protection and Affordable Care Act (PPACA), better known as Health Reform, brought many changes to the healthcare system that may affect you and your business. Our health insurance broker team will keep you informed on the changes, and help you strategize the best way to accommodate them into your benefits program.

employee benefits health insurance

Individual Mandate (Effective January 2014)
US citizens and legal residents are required to have qualifying health coverage. Those without coverage pay a tax penalty of the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income. The penalty will be phased-in according to the following schedule: $95 in 2014, $325 in 2015, and $695 in 2016 for the flat fee or 1.0% of taxable income in 2014, 2.0% of taxable income in 2015, and 2.5% of taxable income in 2016. Beginning after 2016, the penalty will be increased annually by the cost-of-living adjustment. Exemptions will be granted for financial hardship, religious objections, American Indians, those without coverage for less than three months, undocumented immigrants, incarcerated individuals, those for whom the lowest cost plan option exceeds 8% of an individual’s income, and those with incomes below the tax filing threshold (in 2009 the threshold for taxpayers under age 65 was $9,350 for singles and $18,700 for couples).

Who will be required to offer coverage?
Employers with under 50 full-time employees are exempt from any of the below penalties. Employers with 50 or more full-time employees that do not offer coverage and have at least one full-time employee who receives a premium tax credit will pay a fee of $2,000 per full-time employee, excluding the first 30 employees from the assessment. Employers with 50 or more full-time employees that offer coverage but have at least one full-time employee receiving a premium tax credit, will pay the lesser of $3,000 for each employee receiving a premium credit or $2,000 for each full-time employee, excluding the first 30 employees from the assessment. Employers with more than 200 employees are required to automatically enroll employees into health insurance plans offered by the employer. Employees may opt out of coverage. Read more about the new laws at The Henry J. Kaiser Family Foundation Health Reform Source http://healthreform.kff.org/