Ask any recruiter or candidate looking for a job in HR, and 90% will tell you that the biggest change for 2015 and 2016 is health care reform. The Patient Protection and Affordable Care Act, also known as ACA or ObamaCare, has set out with lofty goals and mandated personal health care coverage, as well as encroaching on an employer’s decision to provide health benefits to its employees. It is no longer the employer’s choice, but is instead mandated that for certain provisions to be followed. So, you may ask, what are the top five things that you need to know regarding healthcare reform, specifically as it pertains to the workplace? Here’s your cheat sheet, so get ready to take notes!
#1 – Most individuals are now required to have medical coverage – which means in many cases, employers will have to evaluate their options and offerings to employees.
#2 – Employers with 50 or more employees will face penalties as of 2016 if coverage is not offered to full-time employees, however, coverage does NOT need to extend to spouses. Also, employers with 2-99 employees are considered “small group” in the insurance industry world and are given certain considerations to follow.
#3 – Small businesses may qualify for tax credits! This is great news for our small business clients. Of course, the details vary and are specific to each client, which is why we are here to answer your questions and offer the best solutions for your company’s needs.
#4 – Employers are required to inform their employees IN WRITING of their insurance options by means of Summary Plan Descriptions. Are your handbook and SPD’s in compliance with the health care reform act?
#5 – More good news! Your company could be eligible for a medical-loss rebate. What does this mean in language that we can all understand (rather than the convoluted text of ACA and other acts like it)? Basically, insurance companies are obligated to use 80-85% of their premium dollars directly for insurance claims or healthcare improvements. If they fail to meet that target, the employer is entitled to a rebate that is then distributed amongst the employees. The potential of getting money back is always a good thing!
Healthcare reform is a hot button topic right now, and Peoplescape wants to inform our clients of the loopholes and intricate details of this act as it pertains specifically to your organization. These top five facts are helpful to all employers alike, but we’d love to give you a more personalized analysis of how ObamaCare is affecting your workplace. Remember, knowledge is power and we’re here to share ours with all of our clients.
References: washingtonnational.com, obamacarefacts.com, optimahealth.com, hhs.gov