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Penalties
• Starting in 2015, employers with 100 or more full-time equivalent employees may
be subject to shared responsibility penalties if coverage either does not meet
affordability or minimum value requirements, and is offered to fewer than 70 percent
of its full-time employees and the dependents of those employees (unless the
employer qualifies for 2015 dependent coverage transition relief).
• In 2016, the 70 percent threshold is increased to 95 percent and the shared
responsibility penalties will also apply to employers with 50 or more full-time
equivalent employees.
Administration • The employer will continue to use their current practices to work with issuers to
obtain and maintain coverage.
• The employer will submit required reporting to the Internal Revenue Service starting
in 2016.
Employee
Tools and
Resources
• Employees will use current practices for open enrollment and renew coverage
from the available health plan choices that are made by the employer.
• Employees may use a single seamless process to obtain a full benefits package
including voluntary benefits.
Supplemental
Insurance
Protection
• Employers will have the ability to revise their voluntary benefits package, even though
the medical benefits package is grandfathered.
• These policies can be bought separately to help employees cover out-of-pocket
costs associated with illness or injury.
Maintain
Grandfathered
Status
(continued)
