2016 has brought many more changes to the employer mandate…
When an employer has a group of 50 or more full-time employees, the employer is required to offer affordable health benefits that provide minimum value coverage to 95% of their employees and their children up to age 26. Full-time employees are considered those who work more than 30 hours a week.
For 2016, if an employer has over 50 employees and does not provide affordable health benefits, then they could be fined $2160 per employee. The employer is allowed to subtract the first 30 employees from the group total. If the employer provides coverage that is not affordable and the employee seeks coverage through a government run exchange the fines may increase to $3,240 per employee. For 2016,” affordable” means that the cost of employee only coverage does not exceed 9.66% of his/her income.
Example #1: Employer with 60 full-time employees who does not provide health benefits.
The fine is $2,160 per employee minus the first 30. 60 employees – 30 employees. The employee must pay $2,160 x 30 = $64,800 in fines per year.
Example #2: Employer with 60 employees that offers health benefits that are not affordable which is over 9.66% of the employee’s monthly income. Fines of up $3,240 per employee seeking coverage from a government run exchange. 60 employees – the first 30 so 30 x $3,240 = $97,200 in fines per year.
Employers are also required to provide a minimum value plan but are not required to pay for it. Minimum value is defined as covering 60% of medical services (deductibles, copays and co-insurance included).
If you are a company that is struggling to meet these requirements, call us today! We have some constructive solutions that can fit your needs.
- Colorado Springs metro area – (719) 599-7989
- Denver, Boulder & Ft Collins area – (719) 213-7445
