Implementing Health Care Reform in California
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You have the same options as individuals buying health coverage. Visit these websites: healthcare.gov/ using-insurance/employers/self-employed and coveredca.com There are NO FEES since your business offers affordable coverage. You must pay a fee for not offering affordable coverage. Employees can choose to buy coverage in California’s Health Benefit Exchange, Covered California, and receive a premium tax credit. The fee is $3,000 per employee receiving a premium tax credit in Covered California, up to a maximum of $2,000 times the number of full-time employees, not counting the first 30 employees. You must pay a fee for not offering affordable coverage. Those employees can choose to buy coverage in California’s Health Benefit Exchange, Covered California, and receive a premium tax credit. The fee is $3,000 per employee receiving a premium tax credit in Covered California, up to a maximum of $2,000 times the number of full-time employees, not counting the first 30 employees. No Does the insurance pay for at least 60 PERCENT of covered health care expenses? Do any employees have to pay more than 9.5 PERCENT of family income for the coverage you offer? E M P L O Y E E I N S U R A N C E Do you offer coverage to FULL-TIME employees? (FT = 30+ Hours/Week) Do you employ at least 50 full-time equivalent (or a mix of 50 FT/PT) employees? Yes Yes Yes Yes No No No No Huh? Hmm. Aha! OK, so the Affordable Care Act says employers with at least 100 employees must offer affordable health care coverage in 2015 or face costly penalties (ouch). But employers with at least 50 and fewer than 100 employees won’t be required to comply until 2016. While there’s time to plan, there’s a lot to understand. Go with the flow chart below to start making sense of it all. Did at least one of your employees receive a premium tax credit or cost- sharing subsidy in California’s Health Benefit Exchange, Covered California? The fee is $2,000 for each full-time employee, not counting the first 30 employees. The fee is increased each year by the growth in insurance premiums. Yes Find more information and resources on HRCalifornia. Don’t yet access the website? Start your free 15-day trial: calchamber.com/freeaccess Chart text reprinted with permission by Health Law Guide For Business. © 2014 California Chamber of Commerce Share this infographic: rfr.bz/shicd IMPLEMENTING HEALTH CARE REFORM IN CALIFORNIA 3 STAGES OF EMPLOYER COMPLIANCE Aha! UPDATED Yes No A R E Y O U S E L F E M P L O Y E D ? You are not required to provide health insurance and no fees apply. If you have 25 or fewer employees and average wage is less than $50,000, you may be eligible for a tax credit if you provide health coverage.
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http://www.calchamber.com/hr-california/Pages/aca-infographic.aspx?Tsource=SLIDE OK, so the Affordable Care Act says larger employers must offer affordable health care coverage to employees in 2015 or face costly penalties (ouch). Does this provision apply to you? While you have time to plan, there's a lot to understand. Go with the flow chart to start making sense of it all.
Transcript of Implementing Health Care Reform in California
You have the same options asindividuals buying health coverage.
Visit these websites:healthcare.gov/
using-insurance/employers/self-employedand coveredca.com
There are NO FEES since your business offers
affordable coverage.
You must pay a fee for not offering affordable
coverage.
Employees can choose to buy coverage in California’s Health
Benefit Exchange, Covered California, and receive a
premium tax credit.
The fee is $3,000 per employee receiving a premium tax credit in Covered California,
up to a maximum of $2,000 timesthe number of full-time employees, not
counting the first 30 employees.
You must pay a fee for not offering affordable
coverage.
Those employees can choose to buy coverage in California’s
Health Benefit Exchange,Covered California, and
receive a premium tax credit.
The fee is $3,000 per employee receiving a premium tax credit in Covered California,
up to a maximum of $2,000 timesthe number of full-time employees, not
counting the first 30 employees.
No
Does the insurance pay for at least
60 PERCENTof covered health care expenses?
Do any employees have topay more than
9.5 PERCENTof family income for the
coverage you offer?
EM
P LO Y E E I N S U R AN
CE
Do you offer coverage to
FULL-TIMEemployees?
(FT = 30+ Hours/Week)
Do you employ at least
50 full-time equivalent
(or a mix of 50 FT/PT) employees?
Yes
Yes
Yes
Yes
No
No
No
No
Huh? Hmm. Aha!OK, so the Affordable Care Act says employers with at least 100 employees must offer affordable health care coverage in 2015or face costly penalties (ouch). But employers with at least
50 and fewer than 100 employees won’t be required to comply until 2016. While there’s time to plan, there’s a lot to understand. Go
with the flow chart below to start making sense of it all.
Did at least one of youremployees receive a
premium tax credit or cost-sharing subsidy in California’s
Health Benefit Exchange, Covered California?
The fee is $2,000 for each full-timeemployee, not counting the first 30
employees. The fee is increased each year by the growth in insurance premiums.
Yes
Find more information and resources on HRCalifornia. Don’t yet access the website? Start your free
15-day trial:calchamber.com/freeaccess
Chart text reprinted with permission by Health Law Guide For Business. © 2014 California Chamber of CommerceShare this infographic: rfr.bz/shicd
IMPLEMENTING HEALTH CARE REFORMIN CALIFORNIA
3 STAGES OFEMPLOYER COMPLIANCE
Aha!
UPDATED
YesNo
ARE
YOU SELF EMPLOYED?
You are not required to provide health insurance and no fees apply.
If you have 25 or feweremployees and average wage is
less than $50,000, you may beeligible for a tax credit if youprovide health coverage.
