More Health Exchange Guidelines Released
- Thread starter Yagents
- Start date
- 150
You're dead on.
Found this from Capital Blue Cross.
Penalties to Employers will apply if coverage is:
Not Affordable
Coverage is considered not affordable for a particular employee if that employee is required to pay more than 9.5% of his/her "household income" for the coverage and the employee's household income is less than 400% of the Federal Poverty Level (FPL). This is true even though it is unlikely that you as an employer will know what your employee's "household income" is.
Insufficient
Benefits are considered to be insufficient if employee co-pays and deductibles result in the coverage providing less than 60% of the benefit costs.
The penalty is $3000 for each employee who enrolls in the new insurance exchange and receives a premium subsidy or reduced cost sharing. An employee whose household income is below 400% of the FPL is entitled to such a tax credit.
To illustrate, if the employer offers coverage to 60 employees, and 10 of those employees can not afford the coverage and go into the exchange and receive a premium subsidy, the employer's penalty will total $30,000 ($3,000 x 10 employees).
Not Offered
The penalty comes into play if one or more employees goes into the exchange and gets a credit or subsidy. If just one of this employer's employees goes into the exchange for coverage and receives a tax credit (because the employee is below 400% of the FPL), the employer will be assessed a penalty of $2000 for every full-time employee, with the first 30 of the full-time employees being forgiven.
To illustrate, if the employer has 51 full time employees, and one of those employees goes into the exchange to purchase coverage and receives a tax credit, the employer will pay a penalty of $2000 for each employee in excess of 30. In this case, the penalty will be $2000 x 21 or $42,000.
Footnote: I understand the penalty is a non-deductible business expense. Wonder how many IRS agents will be needed to police Obamneycrap?
Penalties to Employers will apply if coverage is:
Not Affordable
Coverage is considered not affordable for a particular employee if that employee is required to pay more than 9.5% of his/her "household income" for the coverage and the employee's household income is less than 400% of the Federal Poverty Level (FPL). This is true even though it is unlikely that you as an employer will know what your employee's "household income" is.
Insufficient
Benefits are considered to be insufficient if employee co-pays and deductibles result in the coverage providing less than 60% of the benefit costs.
The penalty is $3000 for each employee who enrolls in the new insurance exchange and receives a premium subsidy or reduced cost sharing. An employee whose household income is below 400% of the FPL is entitled to such a tax credit.
To illustrate, if the employer offers coverage to 60 employees, and 10 of those employees can not afford the coverage and go into the exchange and receive a premium subsidy, the employer's penalty will total $30,000 ($3,000 x 10 employees).
Not Offered
The penalty comes into play if one or more employees goes into the exchange and gets a credit or subsidy. If just one of this employer's employees goes into the exchange for coverage and receives a tax credit (because the employee is below 400% of the FPL), the employer will be assessed a penalty of $2000 for every full-time employee, with the first 30 of the full-time employees being forgiven.
To illustrate, if the employer has 51 full time employees, and one of those employees goes into the exchange to purchase coverage and receives a tax credit, the employer will pay a penalty of $2000 for each employee in excess of 30. In this case, the penalty will be $2000 x 21 or $42,000.
Footnote: I understand the penalty is a non-deductible business expense. Wonder how many IRS agents will be needed to police Obamneycrap?
More small businesses should be aware of this. It's been widely purported that there are no penalties for groups of less than 51 employees. The SBA and Chamber of Commerce needs to do mass communication on this before the 2012 elections. Small businesses can create quite a voting bloc.
NFIB (National Federation of Independent Business) and C of C were fully supportive of Obamneycrap when it was in the talking stages. They only changed their tune once the thing was rolled out and they realized Congress had created the bride of Frankenstein.
I have had some discussions with folks at NFIB and now they are backpedaling and saying they only supported the plan THEY wanted.
Of course AARP also endorsed it and now they have buyers remorse as well.
Seems to me the folks who backed this were stupid, gullible, or both.
I have had some discussions with folks at NFIB and now they are backpedaling and saying they only supported the plan THEY wanted.
Of course AARP also endorsed it and now they have buyers remorse as well.
Seems to me the folks who backed this were stupid, gullible, or both.
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