Affordable Care Act and How it Affects Employers

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Starting in 2016, large employers with 50 or more workers have a responsibility to offer employees health coverage. If they don't, they may face fines, but only if their workers go to health insurance exchanges and have earnings low enough to qualify for federal subsidies.  The coverage rule doesn't affect workers who put in less than 30 hours a week.

There are no responsibilities for small employers with fewer than 50 workers. If they want to buy coverage for their employees, the insurance exchanges represent a new option for them in terms of where to shop. Certain employers with fewer than 25 workers are eligible for federal tax credits. To qualify, the company has to cover at least half of the premium for all of its employees, and also have average wages of less than $50,000.

Employer Responsibilities:

Small Employer (less than 50)

1. Notice of Exchanges & Subsidies

2. Lactation Breaks

3. No Favorable Tax Treatment for Individual of Market Place Plan Reimbursements

Small Employer (Less than 50) with Health Insurance Plan

1. Notice of Exchanges & Subsidies

2. Lactation Breaks

3. Small Business Tax Credits (If less than 25 employees)

4. Summary of Benefits & Coverage

5. New COBRA Notice Language

6. 90-day Waiting Period

7. Non-Discrimination-if non-grandfathered

Large Employer (50+ Employees with Health Insurance Plan

1. Notice of Exchanges & Subsidies

2. Lactation Breaks

3. Summary of Benefits & Coverage

4. New COBRA Notice Language

5. 90-day Waiting Period

6. Employer Mandate-Effective 1/1/15 for 100+ employees & 1/1/16 for 50-99 employees

7. Employer Mandate Reporting

8. Non-Discrimination- if non-grandfathered

9. Automatic Enrollment-200+ employees