The Affordable Care Act, enacted in 2010, ensured that everyone was able to receive health insurance regardless of if they have pre-existing health conditions or for any other discriminatory reasons. This Act gave employees the ability to leave their employers if the only reason they were staying was insurance reasons. Employees who were stuck in their jobs to receive benefits now had the opportunity to look for opportunities elsewhere.
There are many options to consider when choosing what coverage you would like to include in your group benefits plan. When considering the purchase of voluntary benefits versus buying group benefits options, you need to understand the advantages and disadvantages of both. Here are a few significant differences that will allow you to make a more informed decision.
https://www.sbmabenefits.com/wp-content/uploads/2020/07/emma-dau-n_4iTY1KmDE-unsplash-1-1-scaled.jpg17072560Amanda Rogershttps://www.sbmabenefits.com/wp-content/uploads/2021/12/SBMA_Website-Logo_250x150.pngAmanda Rogers2020-07-21 14:24:152024-01-12 11:08:48The Difference Between Group and Voluntary Benefits
Employee benefit programs have been mandatory for all applicable large employers (ALE) since the Affordable Care Act, enacted in 2010. This Act requires employers to offer minimum essential coverage to all employees who work in a company with a staff of 50 or more. Failure to comply with this requirement will cause penalties for these companies and will likely lead to an IRS Audit down the road. Here is more information regarding the importance of Penalty A and Penalty B compliance.
https://www.sbmabenefits.com/wp-content/uploads/2020/07/office-1209640_1920-1.jpg12811920Amanda Rogershttps://www.sbmabenefits.com/wp-content/uploads/2021/12/SBMA_Website-Logo_250x150.pngAmanda Rogers2020-07-21 14:14:142024-02-16 08:45:58Penalty A and Penalty B Compliance
The Coronavirus pandemic has had a massive impact on the financial health of thousands of companies in the United States. These employers have seen the enormous reduction in business and the effect it has on their employee benefit programs, and adjust them to meet the needs of both their employees and their business. These adjustments still carry certain obligations the employer must meet under federal legislation. So what do employers need to know about FFRCA and benefits?
https://www.sbmabenefits.com/wp-content/uploads/2020/07/job-applicant-passing-her-documents-3760072-1-scaled.jpg17072560Amanda Rogershttps://www.sbmabenefits.com/wp-content/uploads/2021/12/SBMA_Website-Logo_250x150.pngAmanda Rogers2020-07-21 14:03:142024-02-16 11:35:33What Employers Need to Know About FFRCA and Benefits
All applicable large employers (ALEs) must comply with the Affordable Care Act (ACA), which requires employers to offer minimum essential coverage to all employees.
If an employer does not comply with this employee coverage requirement, it could lead to penalties for the employer and potentially an IRS audit.
Below is a breakdown of ACA penalties A and B and how they could affect your company.
Who is Considered a Large Employer?
First, who is considered a large employer?
Any company or organization with an average of at least 50 full-time employees or “full-time equivalents (FTEs) is considered an applicable large employer.
*For the purposes of the ACA, a full-time employee is someone who works a minimum of 30 hours a week.
Pregnancy, maternity, and newborn care (before and after birth)
Mental health and substance use disorder services
Prescription drugs
Rehabilitative and habilitative services and devices
Laboratory services
Preventative and wellness services and chronic disease management
Pediatric services”
Additionally, ACA benefits cover birth control and breastfeeding support.
The Employer Mandate (Penalty A)
Employers must offer at least Minimum Essential Coverage (MEC) to any benefit-eligible employee. Non-compliance will generally result in a penalty of $2,750 annually PER eligible employee.
The Employer Mandate (Penalty B)
Employers must offer a minimum value plan that meets 60% actuarial value, including hospitalization services.
The MV plan must be offered at a maximum contribution of 9.86% of the employee’s income – YOU pay the difference.
For example, take a California minimum wage employee: A $10.00/hour employee working a minimum of 30 hours per week has a maximum employee contribution of $128.18 per month.
If the plan cost is $300, YOU pay the difference of $171.82 per month.
Non-compliance will generally result in an annual $4,120.00 penalty PER employee who enrolls in coverage through the state exchange AND receives a premium subsidy.
The Individual Mandate
The individual mandate went away starting January 1st, 2019, for most Americans.
Those individuals in specific states that maintain the individual mandate, including the District of Columbia, Massachusetts, or New Jersey, will continue to be penalized according to the individual mandate.
These penalties can easily add up with over 100 employees eligible for health coverage. At SBMA, we want to help you avoid any potential penalties for lack of proper insurance.
https://www.sbmabenefits.com/wp-content/uploads/2020/07/ACA-Penalty-A-and-B-Breakdown.png6281200Amanda Rogershttps://www.sbmabenefits.com/wp-content/uploads/2021/12/SBMA_Website-Logo_250x150.pngAmanda Rogers2020-07-21 13:35:502022-08-28 22:12:17ACA Penalty A and B Breakdown
As COVID-19 continues to impact our daily lives, unemployment has reached a record high, jumping to 14.7% as of April 2020. There are many things to consider when assessing these new statistics and, as an employer or an employee, it’s important to ask yourself this question: How will unemployment affect insurance coverage for workers?
Due to changes caused by the Coronavirus outbreak, many people have made the transition to working from home. This new reality has changed the way most people do business — from holding meetings over Zoom to dealing with distractions at home, this new reality has been an adjustment for just about everyone involved. For employers, this has meant adjusting where they allocate resources and how they operate on a day-to-day basis. As companies continue to keep their employees working remotely, it’s important to understand the effects this change will have on employee insurance benefits.
Coronavirus has flipped our lives upside down in more ways than one. One of the biggest changes is the expectation that nearly everyone stays at home as much as possible. Social distancing measures are currently being enforced in order to slow the spread of the virus, which has caused a major spike in the use of telemedicine resources.
https://www.sbmabenefits.com/wp-content/uploads/2020/07/Screen-Shot-2020-07-21-at-12.13.57-PM.png6811389Amanda Rogershttps://www.sbmabenefits.com/wp-content/uploads/2021/12/SBMA_Website-Logo_250x150.pngAmanda Rogers2020-07-21 12:15:542024-02-16 09:51:40Coronavirus and the Rise of Telemedicine
Coronavirus has disrupted quite a few industries over the last few months. One of the industries that it will continue to affect for the foreseeable future is the healthcare system. As it continues to spread, and we continue to see the effects of coronavirus, insurance programs will likely see a rise in health care costs. Here is an overview of how we think coronavirus could affect health care costs:
Under the Affordable Care Act (ACA), large employers are required to offer health insurance to their employees. Despite everything going on, the IRS will continue issuing letters to large employers regarding penalties for years prior. Beginning in 2015, employers that do not meet the ACA standards can be assessed by a shared responsibility payment. Here are a few of the details behind the ACA health plan penalties and what that may mean for your business:
https://www.sbmabenefits.com/wp-content/uploads/2020/07/Screen-Shot-2020-07-21-at-11.34.32-AM.png7111071Amanda Rogershttps://www.sbmabenefits.com/wp-content/uploads/2021/12/SBMA_Website-Logo_250x150.pngAmanda Rogers2020-07-21 11:35:532021-11-29 15:37:46ACA Penalties May Affect Your Business
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