I am attaching an urgent update from DEBS Insurance. They have been analyzing healthcare plans for like 40 years and have alerted me to a number of embedded penalties and taxes for employers that are not being publicized. Please pay close attention:
ACA and your Company’s impact
By: Diversified Employee Benefit Services, LLC
Multiple changes have occurred in the last few months that require your agent to inform each employee about their future options.
1) This is next piece of the ACA or National Health care Puzzle:
Employer must notify each employee via paycheck insertion or company email that there will be “..Marketplace health insurance” to purchase by an individual. The link, for those employees interested in reviewing that product should go to healthcare.gov
2) Federal and State exchanges should be available 1/1/2014 for all employers and their employees. Please note the following:
Employees should realize that employer contribution will be greater than the anticipated cost for exchange.
Example published by Kaiser Insurance Co. average monthly premium to be $ 440
If an employee’s income is below $ 22,800
Then the employee may qualify for subsidy assistance, how much is that assistance, it is expected to be 50% or net cost of $ 220
Per month.
3) Another twist to Employer charging employees for a portion of the group medical premium states, employer cannot charge more than
9.5% of an employee’s gross income for their portion of the employee only medical premium.
Example: Employee income below $22,800 X 9.5% = $ 2,166 a year
Or, employer may charge employee monthly $ 180.50
So if employer is charging less than the employee should stay under the employer’s benefit plan.
This is an employer nightmare! Employers will have many multiple of employee hourly wages that could change the contribution per employee to the group medical benefit plan
4) Employer benefit plan cannot have out of pocket expenses or employee liability to exceed $ 8,250
This directly refers to deductible and co insurance.
5) Pre existing limitations are eliminated effective 1/1/2014
6) Employer penalties will not be implemented until 1/1/2015
Note: Information from ACA, DOL, Kaiser Insurance Co. and multiple carriers.
Disclaimer: The information above is the opinion of Diversified Employee Benefit Services, LLC and should be reviewed by each employer from additional professional services
800/990-3427 Diversified Employee Benefit Services, LLC