- The ACA defines full time employees as 30 hours. If you have a group health plan you must offer coverage to anyone that works 30 hours with some exceptions. Many small businesses in the past have defined full time workers as above 30 hours. This changes Jan 1st, 2014.
- An employer cannot pay for an employee’s individual health policy and have the payment be on a pretax basis. This was not the case prior to ACA.
- If you provide coverage for employees on your group policy you are not required to provide dependent or spouse coverage. Each case needs to be looked at closely but if you have less than 50 employees you may not want to offer coverage as that will disqualify the spouse and dependents from receiving any subsidies from Covered California. If you have 50 or more employees you are required to offer coverage to dependents.
- If you have a Health Reimbursement Account (HRA) and your employees have money in the HRA, which provides coverage for some Minimal Essential Benefits, the employee will not be eligible for subsidies in Covered California. This becomes effective Jan 1st, 2014.
- Individuals who purchase health coverage from Covered California and are eligible for subsidies receive the subsidy based on the Silver Plan. The individual then has the option of purchasing a Bronze, Silver, Gold or Platinum with the Silver plan subsidy.
What questions do you have about ACA?
Last week I sent out a survey about employer health coverage. Thank you to all that responded. The most interesting results were about 15% of the respondents said they would be dropping their health insurance. Very few people responded to the question of whether they felt their employees would buy individual coverage but everyone one that did did not think their employees would purchase coverage.
Small Business California
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