November 19, 2015
Starting in January, the Affordable Care Act requires businesses with 50 or more full-time-equivalent employees to offer workers health insurance or face penalties that can exceed $2,000 per employee. Ms. Hunter, who has 45 employees, is determined not to cross that threshold. Paying for health insurance would wipe out her company’s profit and the five-figure salary she pays herself from it, she said.“
The margins are not big enough within our industry to support it,” she said. “It’s not that I don’t want to — I love my employees, and I want to do everything I can for them — but the numbers just don’t work.”
Source: Health Care Law Forces Businesses to Consider Growth’s Costs – The New York Times
November 13, 2015
Starting in 2016, push comes to shove for small businesses under the Affordable Care Act, better known as Obamacare. As of January 1, small businesses, broadly defined as firms with 50 to 100 full-time employees, must comply with the ACA’s employer mandate and provide qualified health insurance to their workers or face stiff penalties. But this requirement poses a big threat to the financial stability of small employers—and not for the reasons you might think.
Source: How Obamacare Inadvertently Threatens The Financial Health Of Small Businesses, And What States Should Do About It – Forbes
October 31, 2015
While most large employers — with 500 workers or more — ask employees to complete some sort of health assessment to identify potential risk factors, nearly 60 percent also ask them to prick their fingers for biometric screening, according to a 2015 report by Mercer, a consulting firm. And the number of employers offering financial incentives to complete any of these wellness-related tasks has inched higher: About 56 percent of large employers dangled an incentive in front of their workers last year, the most common being a premium reduction.
Source: The Sticks and Carrots of Employee Wellness Programs – The New York Times
April 6, 2015
About one-third of employers will be hit by the tax in 2018 if they do nothing to change their plans, according to a March survey by Mercer, a benefits consulting firm. By 2022, almost 60 percent will be facing the levy.
“‘Cadillac tax’ is really a misnomer,” said Beth Umland, Mercer’s director of research for health and benefits. “Potentially any employer could be hit by this tax.”
Former Obamacare adviser Jonathan Gruber, in one of the now-infamous videos that emerged late last year, said rising medical costs ensure the Cadillac tax will eventually all but eliminate the break companies get for providing health insurance.
via ‘Cadillac tax’ the next big Obamacare battle – Brian Faler – POLITICO.
April 3, 2015
Is health care reform finding its footing—or fatally flawed? MIT economist and Affordable Care Act (ACA) expert Jonathan Gruber and Cato Institute Director of Health Policy Studies Michael Cannon share opposing viewpoints on the current state of reform.
via Keynote: HEALTH CARE REFORM: WORKING/NOT WORKING? – YouTube.
March 12, 2015
In our book, we project that by 2017, the majority of small businesses that now offer health insurance will switch to defined-contribution. This is being led by small business owners. But it doesn’t stop there.
A few years ago, some big companies [Verizon and AT&T] leaked documents saying they were evaluating dropping health insurance plans. Some big companies will drop their plans and that will have a snowball effect. We project that 90% of all businesses will drop offering health insurance plans in the next 10 years.
via The End Of Employer-Provided Health Insurance.
February 24, 2015
The Cadillac high-cost health plan excise tax, which goes into effect in 2018, is one of the last-to-be-implemented provisions of the Affordable Care Act (ACA). It was one of the most controversial provisions of the ACA, which contributed to its delayed effective date. But 2018 is now getting closer, and the Internal Revenue Services (IRS) is beginning a discussion about implementation of the Cadillac plan tax.
The Cadillac plan provision of the ACA will impose a 40 percent excise tax on the cost of employer-sponsored health plans when that cost exceeds certain thresholds. It is projected to be one of the biggest sources of revenue under the ACA; the Congressional Budget Office (CBO) in its 2015 Budget and Economic Outlook Report estimated that it would account for $149 billion in revenue between 2018 and 2225. Of this, however, only one quarter will come from the tax itself, while three quarters will come from increases in taxes on income as employers shift compensation from health benefits to taxable wages.
via Implementing Health Reform: Beginning The Cadillac Tax Regulatory Conversation And Other ACA News – Health Affairs Blog.