The Affordable Care Act (ACA), enacted in March 2010, was created with the goal to make healthcare more affordable. All applicable large employers (ALEs) with 50 or more full time, or full time equivalent employees must offer ACA compliant benefits to at least 95% of their workforce, and their dependents.
OSHA stands for the Occupational Safety and Health Administration. It’s an agency of the United States Department of Labor. OSHA’s mission is “to ensure safe and healthful working conditions for workers by setting and enforcing standards and by providing training, outreach, education and assistance.”
Understanding the various minimum essential coverage plans that you can offer your employees is essential to providing coverage that matters. At SBMA, we offer the most competitive limited medical plans in the industry. We ensure every client remains ACA compliant by offering our medical plans.
SBMA benefits serve employers with ACA mandated compliance requirements. It supports those employers by offering employees who need affordable benefits the right solution for them. Our mission is to provide great benefits at a great price. SBMA is nationally recognized as industry experts on ACA compliance, ERISA law, and Healthcare Reform, and we’re here to help!
How much can you save with MEC? Minimum Essential Coverage (MEC) is coverage that complies with ACA requirements. The Affordable Care Act (ACA) states that all employers with 50 or more full-time employees- Applicable Large Employers- are required to provide coverage to all eligible employees or they will be subject to fines/ penalties.
Attention Brokers: Are you offering your ALE clients the most affordable MEC? How can you offer your applicable large employers a one-stop-shop for all their needs? Benefits are no longer about simply meeting Minimum Essential Coverage options. You need to offer worksite and voluntary benefits, telehealth options, call center availability, and easy portal management. Why should you offer these options to your employers? Because they want them.
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.
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.
The ACA was created in 2010 to offer more affordable health benefits to a wider range of people. Any ACA-compliant benefit plan must cover these 10 health benefits:
Additionally, ACA benefits cover birth control and breastfeeding support.
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.
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 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.
Contact an SBMA representative for more information regarding your employer benefit needs.