The Affordable Care Act is arriving in stages. Today the Act requires employers to provide their employees with a notice about their health care insurance options. The notice does not require employers to provide insurance – just information about the options available to employees.
Standard notice forms are available on www.HealthCare.gov and from CalChamber (www.calchamber.com) in their store. The forms are free to download on either website.
There are two separate notices – one for employers who already offer group health insurance to their employers and one for employer who do not. Both notices direct employees to sources of information on how to obtain health insurance. In California the notices will provide the website www.coveredca.gov.
Below are some Questions and Answers that may help you understand this stage of implementation of the Affordable Care Act.
Q: What’s new on October 1, 2013?
A: The new service available as of October 1, 2013 is called the Marketplace. The Marketplace is a tool that can help individuals and businesses locate and purchase health care insurance. Along with comparing multiple insurance options the Marketplace will assist users in determining whether they are eligible for tax credits that can lower their premiums right away.
Q: Can I Start a New Plan Today?
A: Almost. Open enrollment starts on October 1, 2013 for coverage beginning as sooon as January 1, 2014.
Q: Can I Save Money Buying Insurance Through the Marketplace?
A: If your employer does not offer health insurance that meets certain minimum standards (or not at all) you may be able to purchase health insurance through the Marketplace and be eligible for a tax credit. The minimum standard for health insurance plans is met if the plan’s total allowed benefit costs covered by the plan are at least 60% of those costs.
Q: When do I have to give new employees their notices?
A: Notices are required to be given to new employees within 14 days of their start of employment.
Q: What happens if I fail to give my employees their notices by October 1, 2013? Or new employees within 14 days?
A: There is currently no penalty for a failure to provide notices to your employees.
Do you have more questions? Contact the tax professionals at Seid & Company, CPAs. We have answers.