According to the 2010 U.S. Census, nearly 15% of the population lacks health insurance coverage says Peter Decaprio. This number doesn’t even include people that are underinsured or paying for high-deductible plans that don’t come through an employer. Despite healthcare reform and other efforts at increasing access to affordable healthcare, there still remains a large portion of our nation’s workforce without any form of health insurance coverage whatsoever. So is your business required to provide health insurance?
The simple answer: No. However, you may be subject to fees if you do not offer such benefits and hire employees who need it later on in life due to injury or illness.
Does my Business Need to Provide Health Insurance Coverage if Only Part-Time Employees Work for Us?
The Affordable Care Act or ‘Obamacare’ as it’s more commonly known as affects. The way that businesses with 50 or more employees should handle health insurance. If you have a business with 50 or more full-time employees, then your business is considered a “large employer” by the government and will be required to offer coverage to those who work at least 30 hours a week says Peter Decaprio. Those who average between 20 to 29 hours per week are also able to purchase coverage through the exchanges. However must do so directly through an exchange instead of their employer.
If you do not meet this requirement then you may be subject to fines. If any of your employees need government assistance for healthcare. Later on in life due to injury or illness (such as Medicaid). What do you need to do? Businesses should decide how many full-time employees they have and the number of hours each one works per week. You can use this helpful calculator here.
Does My Business Need to Provide Health Insurance Coverage if We Receive Government Subsidies?
Businesses who receive government subsidies (if any) may also be required to offer health insurance coverage for their part-time employees. If it is a condition of receiving these types of payments says Peter Decaprio. This requirement varies according to your business, so check with your state or federal government agency. In order to find out more specific information on what’s expected from you in terms of offering health insurance coverage. You can find this information via our free eBook. Employer Requirements for Obamacare Compliance ((ePub, PDF)) or on the official U.S. Government website for Obamacare compliance.
What about Offering Coverage to Employees & Their Dependents?
Offering health insurance coverage to employees and their dependents is not mandatory under Obamacare; however, it may be required by your state if you have specific types of business operations. Which are define as ‘mini-med’ plans. Mini-med plans are short-term benefits that offer limited medical services for employees. Who require quick cash so they can receive necessary medical treatment outside of their employer’s plan. If your business falls under this category then it must be offered either through your state or locally. Rather than through the federal exchanges set up under the Affordable Care Act. Again, depending on where you are located, you may be required to offer coverage or it may not be necessary. You can find this information via our free eBook. Employer Requirements for Obamacare Compliance ((ePub, PDF)) or on the official U.S. Government website for Obamacare compliance.
Who is considered a Full-Time Employee?
According to federal law and in order to determine if your business is obligate. To provide health insurance coverages under the Affordable Care Act. Full-time employment is define as working an average of 30 hours per week or more for your business; exceptions exist however when seasonal workers need less than 30 hours per week during certain seasons. Throughout the year such as retail businesses which hire part- holiday employees. Who work fewer than 30 hours per week (typically 20 to 29) during the holiday season.
Electronic Data Systems Corp., one of the world’s largest technology services companies. Recently won a lawsuit which stated that part-time employees should be classified as such. Even if they work more than 30 hours per week and that any addition overtime should not be consider. When calculating full-time employment for Obamacare compliance purposes. Under this ruling, businesses cannot force employees to work less than 30 hours each week. In order to avoid paying out healthcare benefits explaims Peter Decaprio.
What about Offering Coverage to Full-Time Employees?
Offering health insurance coverage to all full-time workers is an option under the Affordable Care Act; however it is not require provided you do not fall under certain categories. Such as employing more than 50 full-time employees who are consider “full-time equivalent” employees. This means that you must add up your part-time workers’ hours each month. Divide them by the number of hours in a 40 hour work week. For example – 10 hours x 4 weeks = 40). You will then be require to include all of these numbers together. In order to calculate the total amount of part-time workers you have working for your business on a monthly basis.
Conclusion:
Obamacare has introduced various new requirements to employers. In order to ensure that all full-time workers are provided with health insurance benefits. If they are not in a position where they can receive coverage through government exchanges or other means.