Q
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A
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HEALTH CARE REFORM IMPACTS HEALTH INSURANCE
YOU HAVE CHOICES
On June 28, 2012, the U.S. Supreme Court ruled the Patient Protection and Affordable Care Act constitutional and, therefore, all individuals are required to have health insurance by 2014. Businesses must now decide how to handle their health insurance.
With our Employer Health Reform Analytics, we can help you make an informed decision. www.eidebailly.com/HealthCareReform
Will we be assessed the penalty if our employees go to a health insurance Exchange, but do not receive a subsidy?
No. If you are an employer with more than 50 full-time equivalent employees, you do not offer health insurance and none of your employees receive an Exchange subsidy, then you will not have to pay the penalty. However, if an employer-sponsored plan is not offered and one employee receives an Exchange subsidy, then you will pay a $2,000 penalty per full-time employee (minus the first 30 full-time employees).
Additionally, if you offer affordable health insurance coverage and an employee decides to go to an Exchange, you would not have to pay the penalty.
How will we know what type of coverage our employees have if we drop coverage? Are they required to report to us?
Employers who do not offer health insurance will not know what type of coverage or plan their employees will choose through an Exchange. Employees are not required to report the type of coverage or plan they choose to their employer.
Can we offer an employer-sponsored health insurance plan and also give employees the option to go to an Exchange?
Yes. An employer can continue to offer an employer-sponsored plan and allow employees to go to an Exchange to purchase health insurance. However, employees who go to an Exchange to enroll in a plan, while their employer’s
plan is deemed to be affordable, will not be eligible for an Exchange subsidy.
Is health insurance coverage required just for U.S. citizens or all individuals, including green card holders?
Health insurance coverage is required for U.S. citizens and lawfully residing non-citizen immigrants. Therefore, both U.S. citizens and lawfully residing non-citizen immigrants are subject to the individual mandate tax and are eligible to receive an Exchange subsidy.
A
B
Ross Manson, Principal Health Care Reform Specialist
C
“Because of the perceived cost-savings of not
providing coverage, it can be tempting for
organizations to simply opt for the penalty
without taking the time to determine if, indeed,
it is the best business move. It is critical to
consider all aspects of the situation in order to
make an informed decision that is in the best
interest of your company and your employees.”
As of Jan. 1, 2014, the Patient Protection and Affordable Care Act will require all individuals in the United States to have some form of health insurance. Integral to this reform, is the creation of state, regional and federal health care Exchanges, where individuals can purchase a variety of affordable health insurance plans and, if they fall within certain income levels, receive government-subsidized premiums.This Act affects all businesses; however, large employers with 50 or more full-time equivalent employees will be required to:
Provide affordable health insurance coverage for all full-time equivalent employees,
Elect not to provide health insurance coverage, pay defined penalties, and send employees to a state, regional or federal Exchange to purchase insurance, or
Develop a new hybrid plan.
Employers who elect not to provide health insurance coverage will be assessed a penalty of $2,000 annually per full-time employee, minus the first 30 full-time employees if at least one employee receives an Exchange subsidy. Additionally, if an employer’s coverage is deemed unaffordable (i.e., an employee’s “self-only” premium exceeds 9.5% of their wages and receives an Exchange subsidy), the employer will be fined $3,000 for that employee.
Businesses now have more choices than ever. We have the knowledge to help you make an informed decision. Eide Bailly has developed a service to help companies become educated on the Patient Protection and Affordable Care Act and understand their options available under the Act. This service, Employer Health Reform Analytics, allows us to quickly and efficiently help you analyze your options and provide you with information to make an informed decision for your business and employees.
Employer Health Reform Analytics utilizes a proprietary calculator that analyzes your current health insurance plan costs, and projects them forward to 2014. It also compares what the cost would be to pay the penalty and send your employees to an Exchange in 2014, and identifies how many employees would be eligible for an Exchange subsidy. This analysis empowers you with the information you need to make the best decision for your business regarding health insurance: to provide coverage for your employees; send them to an Exchange and pay the defined penalties; or develop a new hybrid plan.
We can also assist you in analyzing the broader impact your decision may have on your business, taking into consideration factors such as:
• The impact discontinuing health care coverage may have on recruitment and retention • The Jones’s Factor – what other companies do and how it affects your competitive advantage • The potential cost savings and how that money can be used in other areas of
your business
• The current and future cost of health care coverage vs. annual mandated penalties • Whether you will need to increase employee salaries if you discontinue coverage • The possibility of developing a hybrid plan that better fits the diverse needs of
your employees
Preliminary Findings
Eide Bailly recently ran some preliminary calculations and found that the following types of businesses will see the greatest financial difference between the options:
• Small businesses that currently don’t offer insurance
• Businesses with large numbers of part-time or seasonal workers • Businesses with employees who receive, on average, lower wages
In one case, for a non-profit, the numbers indicated a potential 40% savings to the organization by sending employees to an Exchange, while increasing salaries to cover employees’ costs for those who are not subsidy-eligible.
Act Now to Be Prepared
The Patient Protection and Affordable Care Act will change how health insurance coverage is perceived and provided in the United States. This Act impacts all businesses, giving owners a chance to redefine their health insurance plans. As health care reform approaches, now is the time to become aware of your options, responsibilities and the potential impact this will have on your business and employees.
Our Employer Health Reform Analytics service is designed to help businesses with more than 50 full-time equivalent employees, or businesses that will reach these numbers in the coming years. By analyzing all available information, you will be prepared to make an informed decision prior to the effective date on Jan. 1, 2014.
This decision could have a significant financial impact on your business. We encourage you to take charge of your decision by understanding the law and evaluating your situation with accurate analytics, so you are ready to make the best decision for your business.
Pricing
We offer our Employer Health Reform Analytics at an affordable rate, based on the number of employees you have.
Contact us today to explore your options. 855.220.8634
HealthCareReform@eidebailly.com
Our Employer Health Reform Analytics Process
STEP 1
> >
Eide Bailly professionals will meet with you and discuss the dataneeded for the analysis.
STEP 2
> >
Once we receive the data from you, we perform the calculations,and then meet to discuss our findings—and your options.
STEP 3
> >
You have the information to make a sound business decision.We can help implement the choice you make.
A
B
Ross Manson, Principal Health Care Reform Specialist
C
“Because of the perceived cost-savings of not
providing coverage, it can be tempting for
organizations to simply opt for the penalty
without taking the time to determine if, indeed,
it is the best business move. It is critical to
consider all aspects of the situation in order to
make an informed decision that is in the best
interest of your company and your employees.”
As of Jan. 1, 2014, the Patient Protection and Affordable Care Act will require all individuals in the United States to have some form of health insurance. Integral to this reform, is the creation of state, regional and federal health care Exchanges, where individuals can purchase a variety of affordable health insurance plans and, if they fall within certain income levels, receive government-subsidized premiums.This Act affects all businesses; however, large employers with 50 or more full-time equivalent employees will be required to:
Provide affordable health insurance coverage for all full-time equivalent employees,
Elect not to provide health insurance coverage, pay defined penalties, and send employees to a state, regional or federal Exchange to purchase insurance, or
Develop a new hybrid plan.
Employers who elect not to provide health insurance coverage will be assessed a penalty of $2,000 annually per full-time employee, minus the first 30 full-time employees if at least one employee receives an Exchange subsidy. Additionally, if an employer’s coverage is deemed unaffordable (i.e., an employee’s “self-only” premium exceeds 9.5% of their wages and receives an Exchange subsidy), the employer will be fined $3,000 for that employee.
Businesses now have more choices than ever. We have the knowledge to help you make an informed decision. Eide Bailly has developed a service to help companies become educated on the Patient Protection and Affordable Care Act and understand their options available under the Act. This service, Employer Health Reform Analytics, allows us to quickly and efficiently help you analyze your options and provide you with information to make an informed decision for your business and employees.
Employer Health Reform Analytics utilizes a proprietary calculator that analyzes your current health insurance plan costs, and projects them forward to 2014. It also compares what the cost would be to pay the penalty and send your employees to an Exchange in 2014, and identifies how many employees would be eligible for an Exchange subsidy. This analysis empowers you with the information you need to make the best decision for your business regarding health insurance: to provide coverage for your employees; send them to an Exchange and pay the defined penalties; or develop a new hybrid plan.
We can also assist you in analyzing the broader impact your decision may have on your business, taking into consideration factors such as:
• The impact discontinuing health care coverage may have on recruitment and retention • The Jones’s Factor – what other companies do and how it affects your competitive advantage • The potential cost savings and how that money can be used in other areas of
your business
• The current and future cost of health care coverage vs. annual mandated penalties • Whether you will need to increase employee salaries if you discontinue coverage • The possibility of developing a hybrid plan that better fits the diverse needs of
your employees
Preliminary Findings
Eide Bailly recently ran some preliminary calculations and found that the following types of businesses will see the greatest financial difference between the options:
• Small businesses that currently don’t offer insurance
• Businesses with large numbers of part-time or seasonal workers • Businesses with employees who receive, on average, lower wages
In one case, for a non-profit, the numbers indicated a potential 40% savings to the organization by sending employees to an Exchange, while increasing salaries to cover employees’ costs for those who are not subsidy-eligible.
Act Now to Be Prepared
The Patient Protection and Affordable Care Act will change how health insurance coverage is perceived and provided in the United States. This Act impacts all businesses, giving owners a chance to redefine their health insurance plans. As health care reform approaches, now is the time to become aware of your options, responsibilities and the potential impact this will have on your business and employees.
Our Employer Health Reform Analytics service is designed to help businesses with more than 50 full-time equivalent employees, or businesses that will reach these numbers in the coming years. By analyzing all available information, you will be prepared to make an informed decision prior to the effective date on Jan. 1, 2014.
This decision could have a significant financial impact on your business. We encourage you to take charge of your decision by understanding the law and evaluating your situation with accurate analytics, so you are ready to make the best decision for your business.
Pricing
We offer our Employer Health Reform Analytics at an affordable rate, based on the number of employees you have.
Contact us today to explore your options. 855.220.8634
HealthCareReform@eidebailly.com
Our Employer Health Reform Analytics Process
STEP 1
> >
Eide Bailly professionals will meet with you and discuss the dataneeded for the analysis.
STEP 2
> >
Once we receive the data from you, we perform the calculations,and then meet to discuss our findings—and your options.
STEP 3
> >
You have the information to make a sound business decision.We can help implement the choice you make.
A
B
Ross Manson, Principal Health Care Reform Specialist
C
“Because of the perceived cost-savings of not
providing coverage, it can be tempting for
organizations to simply opt for the penalty
without taking the time to determine if, indeed,
it is the best business move. It is critical to
consider all aspects of the situation in order to
make an informed decision that is in the best
interest of your company and your employees.”
As of Jan. 1, 2014, the Patient Protection and Affordable Care Act will require all individuals in the United States to have some form of health insurance. Integral to this reform, is the creation of state, regional and federal health care Exchanges, where individuals can purchase a variety of affordable health insurance plans and, if they fall within certain income levels, receive government-subsidized premiums.This Act affects all businesses; however, large employers with 50 or more full-time equivalent employees will be required to:
Provide affordable health insurance coverage for all full-time equivalent employees,
Elect not to provide health insurance coverage, pay defined penalties, and send employees to a state, regional or federal Exchange to purchase insurance, or
Develop a new hybrid plan.
Employers who elect not to provide health insurance coverage will be assessed a penalty of $2,000 annually per full-time employee, minus the first 30 full-time employees if at least one employee receives an Exchange subsidy. Additionally, if an employer’s coverage is deemed unaffordable (i.e., an employee’s “self-only” premium exceeds 9.5% of their wages and receives an Exchange subsidy), the employer will be fined $3,000 for that employee.
Businesses now have more choices than ever. We have the knowledge to help you make an informed decision. Eide Bailly has developed a service to help companies become educated on the Patient Protection and Affordable Care Act and understand their options available under the Act. This service, Employer Health Reform Analytics, allows us to quickly and efficiently help you analyze your options and provide you with information to make an informed decision for your business and employees.
Employer Health Reform Analytics utilizes a proprietary calculator that analyzes your current health insurance plan costs, and projects them forward to 2014. It also compares what the cost would be to pay the penalty and send your employees to an Exchange in 2014, and identifies how many employees would be eligible for an Exchange subsidy. This analysis empowers you with the information you need to make the best decision for your business regarding health insurance: to provide coverage for your employees; send them to an Exchange and pay the defined penalties; or develop a new hybrid plan.
We can also assist you in analyzing the broader impact your decision may have on your business, taking into consideration factors such as:
• The impact discontinuing health care coverage may have on recruitment and retention • The Jones’s Factor – what other companies do and how it affects your competitive advantage • The potential cost savings and how that money can be used in other areas of
your business
• The current and future cost of health care coverage vs. annual mandated penalties • Whether you will need to increase employee salaries if you discontinue coverage • The possibility of developing a hybrid plan that better fits the diverse needs of
your employees
Preliminary Findings
Eide Bailly recently ran some preliminary calculations and found that the following types of businesses will see the greatest financial difference between the options:
• Small businesses that currently don’t offer insurance
• Businesses with large numbers of part-time or seasonal workers • Businesses with employees who receive, on average, lower wages
In one case, for a non-profit, the numbers indicated a potential 40% savings to the organization by sending employees to an Exchange, while increasing salaries to cover employees’ costs for those who are not subsidy-eligible.
Act Now to Be Prepared
The Patient Protection and Affordable Care Act will change how health insurance coverage is perceived and provided in the United States. This Act impacts all businesses, giving owners a chance to redefine their health insurance plans. As health care reform approaches, now is the time to become aware of your options, responsibilities and the potential impact this will have on your business and employees.
Our Employer Health Reform Analytics service is designed to help businesses with more than 50 full-time equivalent employees, or businesses that will reach these numbers in the coming years. By analyzing all available information, you will be prepared to make an informed decision prior to the effective date on Jan. 1, 2014.
This decision could have a significant financial impact on your business. We encourage you to take charge of your decision by understanding the law and evaluating your situation with accurate analytics, so you are ready to make the best decision for your business.
Pricing
We offer our Employer Health Reform Analytics at an affordable rate, based on the number of employees you have.
Contact us today to explore your options. 855.220.8634
HealthCareReform@eidebailly.com
Our Employer Health Reform Analytics Process
STEP 1
> >
Eide Bailly professionals will meet with you and discuss the dataneeded for the analysis.
STEP 2
> >
Once we receive the data from you, we perform the calculations,and then meet to discuss our findings—and your options.
STEP 3
> >
You have the information to make a sound business decision.We can help implement the choice you make.
Q
Q
Q
Q
A
A
A
A
HEALTH CARE REFORM IMPACTS HEALTH INSURANCE
YOU HAVE CHOICES
On June 28, 2012, the U.S. Supreme Court ruled the Patient Protection and Affordable Care Act constitutional and, therefore, all individuals are required to have health insurance by 2014. Businesses must now decide how to handle their health insurance.
With our Employer Health Reform Analytics, we can help you make an informed decision. www.eidebailly.com/HealthCareReform
Will we be assessed the penalty if our employees go to a health insurance Exchange, but do not receive a subsidy?
No. If you are an employer with more than 50 full-time equivalent employees, you do not offer health insurance and none of your employees receive an Exchange subsidy, then you will not have to pay the penalty. However, if an employer-sponsored plan is not offered and one employee receives an Exchange subsidy, then you will pay a $2,000 penalty per full-time employee (minus the first 30 full-time employees).
Additionally, if you offer affordable health insurance coverage and an employee decides to go to an Exchange, you would not have to pay the penalty.
How will we know what type of coverage our employees have if we drop coverage? Are they required to report to us?
Employers who do not offer health insurance will not know what type of coverage or plan their employees will choose through an Exchange. Employees are not required to report the type of coverage or plan they choose to their employer.
Can we offer an employer-sponsored health insurance plan and also give employees the option to go to an Exchange?
Yes. An employer can continue to offer an employer-sponsored plan and allow employees to go to an Exchange to purchase health insurance. However, employees who go to an Exchange to enroll in a plan, while their employer’s
plan is deemed to be affordable, will not be eligible for an Exchange subsidy.
Is health insurance coverage required just for U.S. citizens or all individuals, including green card holders?
Health insurance coverage is required for U.S. citizens and lawfully residing non-citizen immigrants. Therefore, both U.S. citizens and lawfully residing non-citizen immigrants are subject to the individual mandate tax and are eligible to receive an Exchange subsidy.
Q
Q
Q
Q
A
A
A
A
HEALTH CARE REFORM IMPACTS HEALTH INSURANCE
YOU HAVE CHOICES
On June 28, 2012, the U.S. Supreme Court ruled the Patient Protection and Affordable Care Act constitutional and, therefore, all individuals are required to have health insurance by 2014. Businesses must now decide how to handle their health insurance.
With our Employer Health Reform Analytics, we can help you make an informed decision. www.eidebailly.com/HealthCareReform
Will we be assessed the penalty if our employees go to a health insurance Exchange, but do not receive a subsidy?
No. If you are an employer with more than 50 full-time equivalent employees, you do not offer health insurance and none of your employees receive an Exchange subsidy, then you will not have to pay the penalty. However, if an employer-sponsored plan is not offered and one employee receives an Exchange subsidy, then you will pay a $2,000 penalty per full-time employee (minus the first 30 full-time employees).
Additionally, if you offer affordable health insurance coverage and an employee decides to go to an Exchange, you would not have to pay the penalty.
How will we know what type of coverage our employees have if we drop coverage? Are they required to report to us?
Employers who do not offer health insurance will not know what type of coverage or plan their employees will choose through an Exchange. Employees are not required to report the type of coverage or plan they choose to their employer.
Can we offer an employer-sponsored health insurance plan and also give employees the option to go to an Exchange?
Yes. An employer can continue to offer an employer-sponsored plan and allow employees to go to an Exchange to purchase health insurance. However, employees who go to an Exchange to enroll in a plan, while their employer’s
plan is deemed to be affordable, will not be eligible for an Exchange subsidy.
Is health insurance coverage required just for U.S. citizens or all individuals, including green card holders?
Health insurance coverage is required for U.S. citizens and lawfully residing non-citizen immigrants. Therefore, both U.S. citizens and lawfully residing non-citizen immigrants are subject to the individual mandate tax and are eligible to receive an Exchange subsidy.
