First passed in 2010, the ACA is extensive healthcare reform that impacts how employers provide benefits for employees. With the ACA constantly changing, many employers look to us as group insurance experts, to help them stay knowledgeable and compliant with all state and federal laws concerning employee benefits. As such we make it a priority to stay on top of all healthcare reform, new rules and regulations affecting employee benefits as they are established and change from time to time.
We provide the following services to ensure employers avoid penalties and remain compliant with the ACA.
Individuals and Small Businesses may be eligible for a tax credit under ACA healthcare reform laws. Thus, the credit is applied as a discount on your monthly insurance premium. Accordingly, to see if you are eligible for a tax credit, please use the Subsidy Calculator provided by the Health Insurance Marketplace. Or, if you are a business, use the Small Business Tax Credit Calculator provided by the Health Insurance Marketplace. In any case, both businesses and individuals must purchase benefits through the Health Insurance Marketplace to secure their tax credit.
EMPLOYERS: For 2022 – Employers who have more than 50 full-time equivalent employees must offer those employees benefits that pay for 60% of the minimum essential benefits. Accordingly, if you are in non-compliance, you will incur a penalty of $2,750 per year multiplied by the number of full-time employees, and excludes the first 30 employees. Additionally, the penalty is increased each year by the growth in insurance premiums. However, note you may also incur a penalty ($4,120) for each full-time employee who receives a premium tax credit in the Health Insurance Marketplace (Exchange).
INDIVIDUALS: Currently, most individuals are not subject to a tax penalty and are not required to purchase health insurance. The ACA “shared responsibility payment” and the individual mandate has been eliminated for 2019 and beyond. While some states have established their own individual mandates, Indiana is not one of them, so you won’t face a tax penalty for not being covered.
Your employer paid benefits must comply with the “Essential Benefits” of ACA. Specifically, to be in full compliance with the law, your insurance policy must cover at least 60% of the costs of the following essential benefits. If you purchase an individual policy from the marketplace, it’s likely that your policy will also contain these benefits.