Employee Benefits Compliance, Small Employers

Five Things all Small Groups Need to Know About Health Care Reform


1. Employer Mandate Requirements & Penalties

You need to know » Small employers (under 50 employees) who do not offer health insurance to employees are not subject to penalties under health care reform. However, if you do offer health insurance to employees, then Health Care Reform requirements may apply.

How we can help » Help you evaluate the best strategy for your company and ensure compliance with health care reform.


2. Adjusted Community Rating

You need to know » Carriers will be limited to using only age, geographic area, tobacco use, and “tier” or family size to set health insurance premiums in 2014, which may cause your rates to increase. (California does not allow tobacco use as a rating factor. Other states also could disallow any of these four factors.)

How we can help » Help you understand the impact to your premiums and determine if there are early renewal strategies to minimize your exposure.


3. Standard Plan Design

You need to know » Employers who offer health insurance will be required to conform to minimum standards of coverage, such as limits on deductibles and out-of-pocket maximums.

How we can help » Help you evaluate whether your plan meets the minimum standards to avoid paying a fine.


4. Shop Exchange/Marketplace

You need to know » An additional tax will apply to all individual and small group policies sold inside and outside the Exchange. For employers with up to 25 employees who contribute toward health insurance inside the exchange, there is a potential tax credit.

How we can help » Help you understand the benefits and drawbacks of the exchanges and how they will affect your company.


5. Number of Employees

You need to know » Under Health Care Reform, there is a unique way of defining full-time equivalent employees, which means your requirements to provide health insurance benefits may be greater.

How we can help » Help you evaluate how many full-time equivalent employees you have under Health Care Reform to ensure compliance.

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