Facts About Obamacare Small Business Health Insurance Requirements
Many Americans do not have health insurance coverage. This is a problem because it means that respective states sometimes have to cover charges for medical care for uninsured patients. Under the Affordable Care Act, the U. S. Government is attempting to make coverage available for millions of people who do not have it. If you own a company, you may interested in learning about obamacare small business health insurance requirements and how it may affect you.
A small business is typically defined as any organization or company that has more than fifty employees. To determine how many employees a company has, the Affordable Care Act, for calculation purposes, normally counts not only the full-time employees who work more than thirty hours per week, but it also includes the hours worked by the part-time employees at the company. The hours worked by the part-time workers is then aggregated to calculate the full-time equivalents.
Firstly, nearly all employers are required to give notice to their employees informing them of certain details regarding their coverage. This notice was supposed to be given by October 1, 2013. Among other details, the employee must be informed that a new insurance market exists for coverage and that they may be eligible for a tax credit if they buy their coverage through this market.
The employee must also be informed that they might forfeit their employer contributions for health coverage if they choose to buy the coverage through the new market. Employers must provide their employees with a Summary of Benefits to explain what the plan covers and how much it costs.
It is hoped that, with this information, employees should be able to gain a better understanding of the system of coverage going forward. This may help them to properly weigh their options and choose the best method of coverage for themselves and their families when buying health insurance. The Department of Labor offers additional information regarding the Summary of Benefits disclosure.
It is also important to note that Medicare will also be affected by the Affordable Care Act, as there will be additional Medicare withholding taxes on wages. The portion of the hospital insurance tax which is payable by the employee under Medicare has increased from 1.45 percent to 2.35 percent. This affects those employees earning more than $200,000. This tax increase only affects the employees, as the portion paid by the employer remains at 1.45 percent.
Under the Affordable Care Act, group health plans cannot impose waiting periods greater than ninety days from the time that the employee becomes eligible for the plan coverage. This provision applies to all plans sponsored by employers, regardless of their size.
A small business is typically defined as any organization or company that has more than fifty employees. To determine how many employees a company has, the Affordable Care Act, for calculation purposes, normally counts not only the full-time employees who work more than thirty hours per week, but it also includes the hours worked by the part-time employees at the company. The hours worked by the part-time workers is then aggregated to calculate the full-time equivalents.
Firstly, nearly all employers are required to give notice to their employees informing them of certain details regarding their coverage. This notice was supposed to be given by October 1, 2013. Among other details, the employee must be informed that a new insurance market exists for coverage and that they may be eligible for a tax credit if they buy their coverage through this market.
The employee must also be informed that they might forfeit their employer contributions for health coverage if they choose to buy the coverage through the new market. Employers must provide their employees with a Summary of Benefits to explain what the plan covers and how much it costs.
It is hoped that, with this information, employees should be able to gain a better understanding of the system of coverage going forward. This may help them to properly weigh their options and choose the best method of coverage for themselves and their families when buying health insurance. The Department of Labor offers additional information regarding the Summary of Benefits disclosure.
It is also important to note that Medicare will also be affected by the Affordable Care Act, as there will be additional Medicare withholding taxes on wages. The portion of the hospital insurance tax which is payable by the employee under Medicare has increased from 1.45 percent to 2.35 percent. This affects those employees earning more than $200,000. This tax increase only affects the employees, as the portion paid by the employer remains at 1.45 percent.
Under the Affordable Care Act, group health plans cannot impose waiting periods greater than ninety days from the time that the employee becomes eligible for the plan coverage. This provision applies to all plans sponsored by employers, regardless of their size.
About the Author:
Jeannie Monette loves writing reviews about insurance providers. For additional information about Obamacare small business health insurance requirements or to find small business group medical insurance, please check out the Mercado Insurance Services site now.
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