Do you know if the impact of the ACA, Affordable Healthcare Act, will impact companies with less than 50 employees in the near future?
It depends on a couple of factors, including if additional amendments are added over the next few years or if your state opts for a single-payer plan in the year 2017. All employers, large and small, will be impacted by implementation of a single-payer plan. The ACA: A Detailed Long-term Plan The ACA is 1,990 […]
It depends on a couple of factors, including if additional amendments are added over the next few years or if your state opts for a single-payer plan in the year 2017. All employers, large and small, will be impacted by implementation of a single-payer plan.
The ACA: A Detailed Long-term Plan
The ACA is 1,990 pages long and includes every benefit, tax, protection, and reform in specific detail. While most of the reform has already taken place, the ACA outlines forthcoming changes that span to 2020, including some that may affect employers.
Single-payer Plans in 2017
In 2017, under the ACA, states will have the option of offering a single-payer plan where everyone pays a tax, and everyone has coverage. For states choosing single-payer plans, all employers, even those with 1 or 2 employees, will be responsible for some percentage of their employees healthcare costs.
For example, if an attorney only employs one paralegal and no other office personnel, the attorney will have to pay a percentage of the paralegals payroll to cover the cost of the employees healthcare. The employee will also have to pay a percentage of the cost.
Additional Changes Through 2020
The ACA outlines additional changes which are scheduled for 2017, 2018, and 2020, which include:
- Companies with over 100 employees could offer the option of the federal SHOP Exchange
- No more preexisting conditions for anyone including high-risk clients
- All healthcare plans must offer preventative coverage
- Employers will have to pay a tax for purchasing higher quality or Cadillac coverage for their employees
- Total elimination of the Medicare Gap
One additional item to consider is if the employer with fewer than 50 employees is affiliated with another employer. The law, then, combines employers under a controlled group scenario for the ACA reporting and testing purposes. Simply being an employer with a separate Federal EIN and fewer than 50 employees doesnt fully exempt an employer from the ACA’s requirements if its affiliated with another employer.
Not considering the impact of single-payer plans, the ACA doesnt currently cite future requirements for small employers with less than 50 employees. However, the ACA is likely to have amendments added in the next several years. Its too early to know exactly how those changes will take shape.