Obamacare Rollout & Struggles (2013â14): Will employers have to cover 100% health insurance for full-time employees under Affordable Care Act? What is the current protocol/law? How much on average will health insurance cost employers and employees?
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Answer:
Will employers have to cover 100% health insurance for full-time employees under Affordable Care Act? William's explanation of this was great. Also, many employers with less than 50 employees think they are subject to this - they are not. This so-called employer mandate (provide coverage or potentially pay a tax penalty) has been pushed to 2015. (Source: http://www.zanebenefits.com/blog/bid/293473/FAQ-Does-My-Small-Business-Have-to-Provide-Health-Insurance) What is the current protocol/law? See http://www.zanebenefits.com/blog/bid/97281/. Again, this has been pushed to 2015. How much on average will health insurance cost employers and employees? As William mentioned, group health insurance is not cheap. Individual coverage averages nearly $6k/year and family coverage is over $16k/year (split between employer and employee). Source: Kaiser Family Foundation's http://www.zanebenefits.com/blog/bid/312087/Employer-Health-Insurance-Survey-2013 Another popular route is providing employees a pure defined contribution allowance to spend on individual health insurance (via the individual health insurance exchanges, or purchased off the exchange via a broker or online). With individual policies guaranteed-issue and subsidized in 2014, this can be an attractive solution. (See: http://www.zanebenefits.com/blog/bid/321433/FAQ-Can-I-Offer-a-Health-Insurance-Stipend-to-Employees)
Christina Merhar at Quora Visit the source
Other answers
Employers are not required to provide Health Insurance for their employees. If they have over 50 employees working 30 hours or more then they are supposed to provide health insurance. If they don't they have to pay a fine per each employee. Penalty for not providing insurance: Employers with over 50 employees that do not provide insurance must pay a penalty of $2,000 for every employee in the company if even one employee opts to obtain insurance through an exchange. However, the first 30 employees are not counted in calculation of the penalty. Example: an employer with 75 employees would pay the penalty for 45 workers, or $90,000 (45 x $2.000). http://tinyurl.com/yek8f2b Health care insurance is not cheap. Most employers that offer it pay a large portion of the premium and the employee pays the difference. This even applies to dependent coverage. It therefore is not out of the realm of possibility for an employer licking in $400 a month per employee. From the example above, if the employer is NICE, 75 employees times $4,800 each per year comes to a cost of $360,000 for all 75 employees. 400 * 12 = 4800. $4800 * 75 = $360,000 If you were an employer struggling to make ends meet wood you choose to pay $360,000 for insurance for your employees or from the example above, $90,000? ObamaCare was set up to entice employers to go for the penalties. Why not? Doing this however drives the health insurance system to the single payer system which is Obama's plan for America. Socialized medicine like Europe and Canada which sucks is his fondest wish in his 'Hope and Change' agenda for the country. At least that's how I see and understand what's going down in the Affordable Care Act.
William Brown
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