Small businesses are the backbone of America. In fact, according to a recent infographic released by score.org, 50 percent of workers in America work in a small business. Here’s a look at small business HR trends for 2014, according to score.org.
The Affordable Care Act (ACA) requires health insurance plans available in the individual and small group Marketplaces to meet certain actuarial value levels. Marketplace plans provide four standard levels of coverage, or “metallic tiers” of coverage. These tiers were intended to allow consumers to compare plans with different levels of coverage for essential health benefits (EHB). Currently, there are bronze, silver, gold and platinum plans. Last month, a group of U.S. senators and insurers proposed adding a “copper” plan to the bottom of the metallic tiers.
In the aftermath of changes due to the Affordable Care Act, it comes as no surprise that healthcare benefits are a major concern to employers. With the health insurance costs on the rise, many employers are concerned with cutting the cost of healthcare benefits.
With healthcare costs on the rise, employers are seeking a more cost-efficient manner of providing employees with healthcare benefits. The HR Policy Association and the American Health Policy Institute recently published a report based on interviews with chief human resources officers at large corporations about their thoughts on employee healthcare. According to the report, many of these HR officers are in search of an alternative way to provide employee healthcare benefits.
Many small and medium-sized employers are looking for a way to control healthcare benefit costs and still offer a great benefit to their key employees. As an alternative to group health insurance, employers are switching to a premium reimbursement plan to reimburse individual health insurance. It is important to understand the compliance of the rules and regulations regarding the reimbursement of individual health insurance before implementing a premium reimbursement plan.
Many Americans are not sure how they are affected by the requirement to have insurance. Under the Affordable Care Act (ACA), most individuals need to have health insurance coverage in order to avoid paying the “individual shared responsibility payment.” Although Americans are required to have health insurance in 2014, many will be exempt from the payment.
The U.S. Department of Health and Human Services announced that Americans will receive $332.2 million in premium rebates due the Medical Loss Ratio (MLR) provision. Shortly after, Weiss Ratings, an independent research and analysis provider, released their analysis, including the ten insurers who owe the most in MLR rebates.
Today, fewer than 50 percent of small employers offer employees health insurance, largely because of the cost. As such, more and more small and medium sized employers are transitioning away from group health insurance and setting up premium reimbursement plans to reimburse employees tax-free for individual health insurance.
Should we play or pay? Larger employers are trying to figure out how to deal with the Affordable Care Act's "Employer Shared Responsibility Provision," which requires applicable large employers to either offer health insurance in 2015, or else pay a tax penalty. The Employer Shared Responsibility Provision goes into effect in 2015 for employers with 100+ employees, and goes into effect in 2016 for employers with 50-99 employees.
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.