In light of the recent Supreme Court decision, Total HR Management provides a snapshot of the new healthcare reform laws. The Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010 by President Obama. PPACA delivers the sweeping reforms to healthcare and health insurance policies across the board. What is essential to understand is that if you work with Total HR Management, not only will we provide you with quality healthcare benefits for your employees; you will receive affordable rates thanks to our ability to pool all of our clients into a single negotiating pool.
PPACA contains five key provisions:
1) The requirement for all US citizens and legal residents to have health insurance
2) Penalties for employers who do not offer health insurance for their employees
3) State Based Health Exchanges created to offer cost effective insurance options
4) Premium credits for low income individuals
5) Eliminates pre-existing condition and annual as well as lifetime benefit limits
The most relevant law for all employers is the penalty they will face for non-coverage of employees. The exact penalties are complicated to calculate, based on numerous factors. When you work with Total HR Management, such factors are handled by us with the skill and professionalism your company needs and demands.
Some of the basic guidelines of healthcare reform in light of PPACA are outlined below:
Employers with more than 50 employees:
- If coverage is not offered by the employer and even one full-time employee (FTE) receives a premium tax credit, the employer will pay a fee of $2,000 per FTE.
- A voucher will be required if the employee contribution exceeds 8% of household income.
- Employers that offer coverage are required to provide a free choice voucher to employees with incomes less than 400% of the Family Poverty Level (FPL), whose share of premium exceeds 8% but less than 9.8% of their income and who chose to enroll in a plan in the Exchange.
- A Voucher equals to what the employer would have paid to provide coverage under the employer’s plan. Employers providing free choice vouchers are not subject to penalties.
Employers with 200 or more employees
- Required to automatically enroll employees into health plans offered by employer. Employees may opt out.
Total HR Management is here to guide our current clients and potential clients through the minefield of PPACA. Although it will be challenging, we have the experience and the expertise to help your business navigate the pitfalls and difficulties faced. Thanks to our ability to pool the employees from all of our client companies into a single group, our negotiating power with the insurance providers is significant. In addition, we provide the quality services and an ongoing presence that truly benefits your company. If you have any questions or need more information, please feel free to contact us.