Episode 000 – Affordable Care Act

Episode 000 – Affordable Care Act

 

It’s April 16th Schmos and as of last week the ACA, Affordable Care Act, is starting to come around again as the House Democrats have introduced a new bill trying to augment it. Most democratic and republican primary hopefuls are now crafting their stances on healthcare and ACA specifically. So let’s get to what’s happening Right Now!

Right Now –

ACA

Trump Admin

Since 2018 they Administration has given guidance to the state run ACA boards on how to create short term insurance plans that do not comply with ACA protections as a means to curb the ACA.

House Dems

March 26th introduced the Protecting Pre-Existing Conditions and making Healthcare Affordable in 2019 bill. This bill aims to expand the availability of ACA subsidies to people in additional income brackets, make ACA premium tax credits more generous, restore full funding to the annual initiatives to promote insurance enrollment through the ACA marketplace and pay “navigators” t help people enroll and rescind recent guidance that gave states more flexibility to modify ACA coverage requirements.

If legislation passes the Dem led House, the Rep lead Senate won’t hear it and President Trump won’t sign it.  

What does that mean for Schmos?

To be honest until everything gets sussed out in the legislature HR professional can only take a wait and see approach. Remember as an employer of a large company which the ACA mandates as 50 or more full-time equivalent employees, you must offer affordable health coverage that meets the ACA minimum value and affordability standards. The ACA minimum value is 60%, which means the insurance plan is designed to pay atleast 60% of the total cost of medical services. The affordability percentage for 2019 is 9.86%, meaning the premium for employee only coverage isn’t above 9.86% of an employee’s household income. If you as an employer do not meet these standards you can be subject to IRS penalties which are calculated per employee, per month, unless you meet certain safe harbor regulations.

We will continue to go forward with monitoring all ACA related issues at Joe Schmo HR and absolutely provide you with any updates you might need.

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