Thursday, September 05, 2013

Obamacare rude awakening for small business owners

Health Care Reform impacts ALL of your employees - even those who are part-time, seasonal, and currently not eligible for or purchasing benefits - as well as all of their family members. A key provision of the Affordable Care Act is the "Individual Mandate," which requires most individuals to purchase health insurance coverage or pay a penalty.  

On August 27, 2013, the IRS issued final regulations on the individual mandate. The rules clarify whether certain types of coverage are acceptable. 
 
The penalty for not obtaining health insurance coverage will be phased in over a three-year period, as follows:

2014: The penalty will start at $95 per person or up to 1 percent of income.
2015: The penalty will increase to $325 per person or up to 2 percent of income.
2016 and after: The penalty increases to $695 per person or up to 2.5 percent of income.
The penalty is calculated on a monthly basis and will be assessed for each month in which an individual goes without coverage!

The ChamberChoice Client Resource Center can help your employees and their family members understand the Individual Mandate. The health care arena is changing and all individuals have a responsibility to comply with new legislation or pay a penalty. Our representatives can help any individual sort through the confusion, understand their options and responsibilities, and find the solution to meet their specific needs.  

Please share the enclosed Health Care Reform bulletin with your employees and encourage them to call our CRC at 1-800-377-3539 to speak with one of our licensed representatives.

1 comment:

Diane Cipa said...

Follow up. I rechecked and confirmed that the 9.5% of W2 earnings rule only impacts large employers. The plans we know and like will go away and so we are still effected by ACA but at least I don't have to monkey around with rebalancing salary and insurance options.