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If your business alreadyoffersemployer-sponsoredbenefits:
Youmost likely have a good idea of howmuch your business can afford topay. Take into
consideration projected increases in health care costs, and your potential eligibility to take
advantage of theSmall BusinessHealthOptions Program (SHOP) in 2014. If your business is
mid-to-large sized and rising costs are a concern, consider a privatemarketplace that offers
fixed contribution options to help control costs.
If youareconsideringoffering thesebenefits for thefirst time:
Discuss your optionswith your benefitsconsultant or broker tohelpweigh thecosts. For
instance, in2013, healthcarecostsareexpected to increaseper employeeby5.3percent
(0.6percent lower than in2012).
4
Youcanusecost estimates todetermineapproximatelyhow
much itwill cost per-employee, aswell aspotential penalties for not providingemployeehealth
coverage. Additionally, youcanestimate your eligibility for small business taxcredits tohelpdefray
thecostsassociatedwithhealthcarecoverage through theHealth InsuranceMarketplace.
Employee benefits are a key indicator of employee
satisfaction, retention andproductivity. In fact,
the 2013AflacWorkForcesReport revealed that
workerswho are extremely or very satisfiedwith
their benefits program are three timesmore likely
to staywith their employer than thoseworkers
who are dissatisfiedwith their benefits program.
2
Withmany options to choose from, including
traditional insurance, self-insurance, HMO, PPO, affordable coverage, or a combination of
options, take time todetermine your business strategy. A few strategies to consider include:
Adjust current healthplan:
Talkwith your broker or benefits consultant to understand how your current benefitswork
within newACA standards. Youmay find that your benefits alreadymeet or exceed federal
Essential Question2:
Howmuch can
mybusiness
afford to spend?
Essential Question3:
Which strategy
will I choose?
In
2013
,
health care costs are
expected to increase
per employeeby5.3%
(0.6% lower than in2012).
4
Update
OnFeb. 10, 2014, the federal government announced adelay to the employer shared-responsibility penalty, giving employers time
to transition into the new rules. Given this delay, starting in2015businesseswith100ormore full-time equivalent employees need
toprovide affordable,minimum value health care coverage to70percent of all full-time employees and their dependents, unless the
employer qualifies for 2015dependent coverage transition relief, or face apenalty.
In2016, the70percent threshold is increased to95percent, and the shared responsibility penaltieswill also apply to employers
with50ormore full-time equivalent employees.
Dependent coverage transition relief
There is nopenalty for failure to cover dependents during the2015plan year if the employer takes steps during2015 toward
satisfying the requirement in the followingplan year.
This transition relief applies to employers for the2015plan year for plans under which: (1) dependent coverage is not offered; (2)
dependent coverage that does not constituteminimum essential coverage is offered; or (3) dependent coverage is offered for
some, but not all, dependents. The transition relief is not available to the extent the employer offereddependent coverageduring
either the2013plan year, or the2014plan year and subsequently dropped that offer of coverage. The transition relief only applies
for dependentswhowerewithout anoffer of coverage from the employer inboth the2013 and2014plan years. In addition, the
employermust take steps during the2014or 2015plan year (or both) to extend coverage under theplan todependents not offered
coverageduring the2013or 2014plan year (or both).
