Employee benefits are constantly evolving, and the Affordable Care Act will further change how HR departments offer certain features to their staffs. The federal health care mandate is supposed to make medical coverage more accessible and affordable for average consumers, which means that companies will have to adhere to certain standards when it comes to group insurance plans.
As noted in our infographic, the federal government is seeking to extend coverage to 32 million Americans through the ACA. This would reduce the uninsured population from 18 percent of the country to a mere 6 percent.
Under the ACA, an employer with the equivalent of 50 or more full-time workers is required to offer insurance. “Full-time” is defined as an average of 30 working hours per week or 130 hours in a single month.
These requirements will ensure that more people have access to insurance. Some companies will be forced to sponsor some type of coverage option in order to comply with the law, which will help Americans purchase plans.
Affordability
The ACA also outlines details for ensuring that insurance is affordable for workers. When the law’s employer provisions go into effect in on January 1, 2015, company insurance plans will not be able to cost more than 9.5 percent of an employee’s wage as stated on their W-2. Employers who charge more than this rate will be fined $3,000 per employee as a tax penalty.
This will help the workers improve their financial footing while still paying for insurance. As noted in our infographic, a recent ADP poll shows that 8.6 percent of workers already pay more than the government-mandated limit, so they are likely looking forward to the implementation of the ACA.
Further, it seems that $45,000 is the salary level that divides those who purchase insurance and those who don’t. Survey data reveals that only 37 percent of workers who earn between $15,000 and $20,000 have purchased coverage and that 58 percent of people who make between $20,000 and $25,000.
Ultimately, the ACA is a comprehensive law that will cause HR departments to update their health benefits plans. Understanding the act’s various provisions will help a company offer comprehensive coverage to its staff while maintaining compliance. Fortunately, organizations have until 2015 to restructure their insurance options in order to avoid any fines or tax penalties.
