Healthcare Reform Timeline

Large Employers

 

What You Need to Know About Healthcare Reform
 

  1. Starting in 2015, you must offer affordable coverage to avoid penalties.
  2. You will still purchase health coverage as you always have.
  3. There will be changes to your coverage as well as new taxes, assessments, and fees. 

1. Starting in 2015, you must offer affordable coverage to avoid penalties.

The requirement for large employers to offer health coverage under the Affordable Care Act has been pushed back to 2015. To avoid paying penalties, employers with 50 or more full-time employees or combination of full-time employees and full-time equivalent employees must offer the following to at least 95 percent of full-time employees and their dependents (children, but not spouses):

  • Coverage that is affordable, meaning that the employee's share is not greater than 9.5 percent of their household income. An employer may use the employee's W-2 wages to determine affordability. Whether coverage is affordable is based on the lowest cost individual-only plan available to the employee, even if the employee chooses family coverage.
  • A plan that provides at least minimum value,  which means that the plan's estimated share of benefits provided is at least 60 percent of typical healthcare costs. (Employees pay the rest.)
  • A plan that offers minimum essential coverage. You meet this requirement by  offering a comprehensive medical plan.

To find out if you may incur a penalty, please see this infographic. All penalties are assessed by the IRS and are assessed as an excise tax.

2. You will still purchase health coverage as you always have.

At this time, large employers are not able to purchase through HealthSource RI,  our state's health insurance marketplace  (also called an exchange). So you’ll continue to buy plans through a broker or directly from Blue Cross. In 2016, employers with less than 100 employees will be considered "small employers" and eligible to purchase through the Small Business Health Options Program (SHOP) through HealthSource RI. In 2017, states will have the ability to approve large employers (100 or more employees) to buy plans through the SHOP program.

3. There will be changes to your coverage as well as new taxes, assessments, and fees.

Download our chart to see at-a-glance coverage changes in 2014 and beyond. The chart also includes the taxes, fees, and requirements that you may be responsible for under the Affordable Care Act.