ACA and Employer Health Insurance: Navigating the Complexities
The Impact of ACA for Employers
The Affordable Care Act (ACA), also known as Obamacare, has had a significant impact on businesses and their health insurance offerings. One major concern that employers face is the increased complexity of regulations surrounding health insurance. The ACA imposes various mandates and reporting requirements, which can be challenging for employers to navigate.
Employer Shared Responsibility Provision
One of the most significant provisions of the ACA is the Employer Shared Responsibility Provision (ESRP). The ESRP requires employers with 50 or more full-time equivalent (FTE) employees to offer affordable health insurance to their employees or pay a penalty. The affordability and coverage requirements are complex, and employers need to carefully consider their options to comply with the ESRP.
Reporting Requirements
The ACA also imposes significant reporting requirements on employers. Employers are required to file Form 1095-C with the IRS, which reports information about health insurance coverage offered to employees. Failure to comply with these reporting requirements can result in penalties.
Penalties for Non-Compliance
Penalties for non-compliance with the ACA’s employer mandates can be substantial. Employers who fail to offer affordable health insurance to their employees may be subject to a penalty of up to $2,750 per full-time employee. Employers who fail to comply with the reporting requirements may also face penalties of up to $250 per employee.
Seeking Professional Assistance
Due to the complexity of the ACA’s regulations, many employers choose to seek professional assistance from licensed agents or brokers. These professionals can help employers understand their responsibilities, select the right health insurance plans for their employees, and ensure compliance with the ACA’s requirements.
Talk to a licensed agent today to learn more about your ACA compliance options.
Question? or Need a Free Quote?
Contact Us
Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.