10 Things Every Business Should Know About Healthcare Reform:

September 26th, 2012

10 Things Every Business Should Know About Healthcare Reform:

 

(1) Tax Credits for Small Employers

Employers with fewer than 25 employees and average annual wages of less than $50,000 may claim a tax credit for the cost of providing insurance which began with 2011 tax returns.

(2) Dependent Coverage

Health plans that cover dependents now have to cover dependents on a parent’s plan until their 26th birthday.

(3) W-2 Reporting

Businesses with 250 employees or more in 2011 must begin to report on 2012 W-2’s the aggregate value of health benefits provided to each employee including medical, dental and vision coverage. Employers with fewer than 250 employees fall under the requirement beginning with W-2s issued Jan. 2014.

(4) Health Care Premium

For small employer and individual health insurance plans, at least 80% of all premium dollars collected are spent on health care services and health care quality improvement.

(5) Requirement to Inform Employees

Beginning in 2013, employers must provide each employee with written information on the employer health plan, health exchanges, available subsidies for insurance and guidelines about how to purchase insurance.

(6) Simple Cafeteria Safe Harbor

Beginning in 2011, simple cafeteria plans for small businesses include a safe harbor from nondiscrimination requirements if the employer averaged 100 or fewer employees during either of the 2 years preceding 2011.

(7) Employer Play or Pay

Beginning in 2014, employers with more than 50 employees will pay a per-employee penalty fee if they do not offer health coverage or if they offer coverage and at least one full-time employee receives a premium subsidy.

(8) Tax on “Cadillac” Plans – 40% tax

Beginning in 2018, there will be an excise tax on any “excess benefit” of employer-sponsored coverage. This is currently defined as more than $10,200 for individual coverage or more than $27,500 for family coverage.

(9) Automatic Enrollment

Employers with more than 200 employees must automatically enroll employees in employer-sponsored plans.

(10) SCOTUS Decision

The law has been upheld by The Supreme Court. So now, there is no question about implementation. You must act now to be in compliance. These laws can only be repealed by 2/3 of the house and senate and then the president has an opportunity to veto thereafter.

ABM Insurance & Benefit Services, Inc.

Copyright July 2012