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Employer ACA Mandate






Who will be required to offer health insurance benefits beginning in 2015, or be subject to a fine? In a complicated piece of legislation it is a simple question to answer: business that have 100+ employees averaging 30 hours per week. The fine per employee can cost up to $255 per employee each month, and in most cases be more expensive then offering a group health insurance plan.

If this is your company how do you plan on adapting? Lots of initial reactions have companies looking at moving below the threshold of 100 full time employees. This solution will be short lived, due to the mandate being lowered to 50 full time employees in 2016. But, will this strategy help improve business and employee morale?

Well, there is a simple and cost effective solution that is just being taught to employers, and it has become the only option for companies. This strategy that only has been in effect since January 1, 2014 allows business to provide an ACA compliant plan for around $100 per employee. It’s a simple process that is priced the same regardless of gender, age, or health within the group. The company that offers this plan contractually guarantees compliance and handles administration thought-out.

In essence, there are four options that each company can decide to take:

Option one is to do nothing and face a fine of $255 per employee each month. These are the A & B taxes that will put a company out of compliance.

The second choice is to offer health insurance coverage and share a minimum of 50% of the cost with employees. With rising health care costs this can be upwards of $200-$300 month for each party. This strategy can run into some issues where the coverage becomes unaffordable to employees, and still causes the business to be eligible for potential fines.

The third option is a new concept developed specifically with the company in mind. It allows the employer to pay 100% of the coverage for its employees at $103.75 a month. These costs are all 100% tax deductible and can actually realize a significant refund each month depending on the plans use by the employees.

The fourth option for companies is to change business models, and either downsize, or restructure employee classifications. In a world where moving forward and developing employees is a key component to any successful business. What would the cost of downsizing or changing your entire infrastructure really be?



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About the Author

Timothy Hirsch, Medicare & Health Insurance Services Omni
Po Box 928
Pelham, NH 03076
603-560-3851

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