Health Care Reform -

How will it's impact be felt?


The Patient Protection and Affordable Care Act (PPACA), otherwise known as the “Health Care Reform Act”, was signed into law on March 23, 2010 by President Obama.

The bill is a whopping 2000+ pages long, with a 14-page Table of Contents! It’s no wonder that most employers have little comprehension of what is contained in the bill, and less understanding of how the bill will affect their business.

Contact Brady Benefits & Associates to assist you in understanding the impact of the bill on your business.

Changes for 2015 -2018

Most of the act’s important provisions will become effective in 2014. The most relevant laws for employers are the penalties they will face for non-coverage of employees. The exact penalties are complicated to calculate, base on numerous factors. Some of the basic guidelines are outlined below:

Employers with more than 50 employees

  • If coverage is not offered by the employer and even one full-time employee (FTE) receives a premium tax credit, the employer will pay a fee of $2,000 per FTE, excluding the first 30 ee’s.
  • If “affordable” coverage is not offered and one FTE receives a premium tax credit, the employer will pay the lesser of $3,000 for each employee receiving a tax credit, or $2,000 for each FTE. Affordable coverage is defined as an employee cost of health insurance, less than 9.66% of household income and the actuarial value of plan is at least 60%.
  • A Voucher will be required if the employee contribution exceeds 8% of household income.

All Employers

  • Employers that offer coverage are required to provide a free choice voucher to employees with incomes less than 400% of the Family Poverty Level (FPL), whose share of premium exceeds 8% but less than 9.8% of their income and who chose to enroll in a plan in the Marketplace.
  • A Voucher equals to what the employer would have paid to provide coverage under the employer’s plan. Employers providing free choice vouchers are not subject to penalties.

Employers with 200 or more employees

  • Required to automatically enroll employees into health plans offered by employer. Employees may opt out.

If the provisions of the health care reform act sound complex, they are! Contact Matt Brady to consult with a specialist who is an expert on small business medical insurance plans and is familiar with the Act. 2020 Cadillac Tax. 40% tax on plans value in excess of $10,200 single, $27,500 family.

Helpful Links

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