Care ActThe Affordable Care Act is still getting a lot of press as some of the major components of it are set to go into effect in 2014. And though it’s a complicated piece of legislation, business owners need to educate themselves on what it will mean for them in terms of how, if and when they need to provide health insurance for their employees.
This week, Blue Cross and Blue Shield, in partnership with the Helena Chamber of Commerce, held a two-hour educational seminar on what the ACA will mean for business owners.
The main thrust of the legislation was focused on reforming the health insurance industry, said BCBS representative John Doran.
It basically will require people to be covered by some form of insurance. Businesses with 50 or more full-time equivalent employees will be required to provide insurance to their employees or pay a penalty, Doran said.
The ACA also sets up public health insurance exchanges, eliminates pre-existing conditions as a way to deny or limit coverage and provides government subsidies for certain health insurance consumers.
For businesses, careful consideration is needed when looking at how and if to provide health insurance to employees.
Each situation is different, Doran explained. And it may end up being more cost effective for an employer to incur the penalty rather than provide insurance. Additionally, it is feasible for it to be more cost effective for the employee not to have insurance through their employer, but rather purchase it through the health insurance exchange.
The health insurance exchange in Montana will be set up and run by the federal government and should be operational by Oct. 1, Doran said.
The exchange will provide subsidies for people and families from 133 to 400 percent of the federal poverty level. The amount of subsidy depends on income. These subsidies could provide cheaper insurance for people than they could ultimately get through their employer.
Doran encouraged business owners to consider five things if they were looking at providing health care for their employees: financial incentives, talent acquisition and retention, company culture, employee wellness and industry trends.
The main take-away from Doran’s presentation is the ACA has made the decision about whether or not to provide health care for your employees infinitely more complicated, but not impossible.
If you own a business, do yourself a favor and sit down with your accountant or seek out an insurance provider and begin the process now of figuring out a game plan. The provisions of the legislation that impact employers will take effect in 2014, but getting ahead will allow you to adjust budgets and communicate with current employees well in advance of the change.
source: http://helenair.com
