Congress passed the Patient Protection and Affordable Care Act (PPACA) in March 2010, fundamentally altering the way companies manage health insurance programs for their employees. ABA’s focus is to continue to work on favorable implementation of the health care law, while at the same time work to amend the PPACA through commonsense changes to employer requirements, taxation, and other burdens created under the law.
Beginning in 2014, employers with more than 50 employees will be required to offer coverage or pay a $2,000 fine per employee if just one employee receives a subsidy to purchase insurance through newly created state health insurance exchanges. A firm’s first 30 employees will be subtracted from this penalty payment calculation.
Businesses with more than 50 employees that do offer health benefits will face a $3,000 fine for each full-time employee who opts out and receives a subsidy to purchase coverage through an exchange. Part-time employees are taken into account as full-time equivalents, defined as working 30 hours per week. The total employer penalty is capped at the maximum penalty amount it would face if it did not offer any coverage at all. An employer plan must cover a specific set of services to be determined by the government and meet actuarial standards laid out in the law.
The Cost of Healthcare Regulations on Your Company – Presentation given at the ABA HR Committee 2012 Winter Meeting discussing the specific financial impacts of PPACA on the baking industry – By Lockton Companies
Healthcare Implementation Timeline – A timeline of what to expect from PPACA over the next few years – By the U.S. Chamber of Commerce