Issue link: http://www.insightdigital.biz/i/107253
What the Affordable Care Act means to: Companies with more than 50 workers who average more than 30 hours a week: Must offer a bare-bones insurance plan starting in 2014. Employers who don't comply will end up paying a fine (or tax) of $2,000 per employee, less the first 30 workers. In other words, if Company A has 51 employees who average 30 hours a week or more and leaders decide not to offer insurance, the business would have to pay the $2,000 fine for each of 21 employees. Companies with fewer than 50 employees: Not mandated to offer insurance to employees, but can join a healthcare B Changes Already in Place Businesses are already dealing with two key pieces of the ACA. As of Jan. 31, 2013, employers with 250 or more employees needed to include on their workers' W-2s how much they pay towards that employee's health insurance coverage. "On one hand, it increases awareness among employees about what their employer is spending but will also allow the IRS another tool to keep track of employers who pay for insurance and those who don't," Kuglitsch says. At Faith Technologies, the HR staff has met regularly and in person with employees to keep them updated on changes, such as the $2,500 cap now imposed on flexible spending health accounts, says HR manager Amy Dempsey. "It's essential to have that communication in place so employees know what's happening and to let them know where these changes are coming from. This isn't Faith deciding to limit your flexible spending account, but the government," she says. Insurance companies are working frantically to stay up to date on changes and keep their clients informed. WPS Health Insurance is investing in new technology to better handle the coming changes and looking at different product offerings for exchange to purchase insurance. Employers with fewer than 25 employees are eligible for tax credits to help provide their employees with insurance. Credits are available on a sliding scale, but employers can receive up to 35 percent of their total contribution to an insurance plan in tax credits. Individuals (including entrepreneurs): Can purchase insurance through the insurance exchange. After Jan. 1, 2014, if an individual does not purchase insurance, they will pay a penalty up to about $2,000 per family depending on their income. both the commercial market as well as the exchange, says Tim Olson, senior vice president of sales and marketing. While Olson and others in the insurance industry have no idea what the new exchanges will look like, insurance providers have already made some changes in their offerings to meet some of the new rules, including covering dependents up to age 26 and offering comprehensive women's health coverage, including birth control. "It's the Wild West and fast and furious as we head towards 2014 with the exchanges. No one is sure what they will bring," Olson says. Menasha's Network Health is also getting ready for the exchanges and the mandate that everyone carry health insurance. President Sheila Jenkins says Network has developed new family and individual insurance policies for the first time to reach this market. "As we anticipate many more small business owners seeking insurance options for their employees, we will continue to work hard to provide affordable health plan options which will meet their individual needs," she says. For Gruner, it all comes back to meeting the needs of the patients. "It's not worthwhile for doctors and nurses to be worried about how they get paid. That's for us in administration. I just want them to focus on what they do best and take care of patients and provide them with the best care possible," he says. Want More Information? Health care reform and its impact on employers is the topic of the March 26 St. Norbert CEO Breakfast & Strategy Series event. Jerry Ganoni, president of small business and specialty benefits at Humana, and Mark Wernicke, Humana vice president, will lead the discussion, which starts at 7:30 a.m. at the F.K. Bemis International Center at the college campus in De Pere. To register, visit https://tickets.snc.edu/tickets/events.php?domain=CEO. w w w. i n s i g h t o n b u s i n e s s . c o m F e b r u a r y 2 013 • Insight | 29