On February 10, the final regulations and provisions were released for the Patient Protection and Affordable Care Act (PPACA). The Obama administration will be giving employers more time to comply with the requirement to offer affordable health coverage to full-time employees.
What does this mean for your business?
SMALL BUSINESSES. Employers with fewer than 50 employees are exempt from the requirement and will not need to provide affordable coverage for their employees.
MID-SIZE BUSINESSES. Employers with 50-99 employees will not have to provide affordable coverage until 2016, extending the requirement to comply by one year. However, they will be required to certify that they did not reduce payroll to fall into this category.
LARGE BUSINESSES. Employers with 100 or more employees must offer affordable coverage to only 70% of full time workers in 2015. These companies will need to reach the 95% threshold in 2016.
“Affordable coverage” means that a full-time worker will not have to spend more than 9.5% of his or her income on premiums (employee-only). The new policies also must cover essential health benefits, such as prescriptions and maternity care. This provision also clarifies which employees count toward the headcount. The relaxed deadlines are intended to make the overall transition process smoother and to give employers adequate time to comply with the regulation.