by Rebecca Scott, Marketing Intern
As stated in our blog about actuarial levels, small businesses and individuals may purchase one of the four levels of health insurance plans from their state exchanges. But, what are the employer requirements under Obamacare? Large employers will not be able to purchase actuarial level health insurance plans through exchanges until the year 2017. However, the insurance that they offer to their employees must be similar to the actuarial level standards in order to meet the Obamacare requirements. Large employers do not, however, have to classify their plans into actuarial values or cover all ten statutory essential health benefits defined by Obamacare.
Employers with over 50 full-time and full-time equivalent employees are required to offer at least one plan that covers 60% of an employee’s health expenses. When an employer fails to do so, an employee will become eligible for tax credits to buy coverage in the exchanges. If an employee receives a tax credit, then the employer will face a penalty.
Although large employer requirements under Obamacare do not include the 10 essential health benefits listed in “Obamacare: What Are Actuarial Levels?”, most large employers that offer plans already include benefits that are similar to the 10 essential health benefits. The IRS has proposed that large employers’ insurance plans have four core benefits, which are hospital and emergency room services, physician and mid-level practitioner care, laboratory and imaging services, and pharmacy benefits.
How can we help you?
Time Forge will help keep you as organized and stress-free as possible through this entire process. We’re working to provide a checklist of steps for you and your business so you know what to do and when to do it, and so you can make sure you’re conforming to the Obamacare standards in order to avoid fines and taxes. Our software can already help you determine whether you’re a large employer or a small employer, and who may be eligible for health insurance coverage according to Obamacare by giving you the ability to generate reports that show part-time and full-time employees, plus their hours scheduled vs. hours worked, with averages. We have also written a complete guide called Obamacare: A Handbook for Employers, that will help you throughout the entire implementation process.