Compliance Office
What you need to know
As an employer, what choices do I have regarding health benefits for my employees?
Beginning on January 1, 2014, if an employer has 50 or more full-time employees, they must offer a qualified health plan to their employees and require those employees to pay no more than 9.5% of their income to enroll. The allowable percentage is adjusted annually and in 2017 it is 9.69%.
There are four levels of actuarial value for a qualified health plan, ranging from 60% upward to 90%. If an employer does not offer a qualified health plan or does not meet the premium-to-income test, they will be subject to a non-tax-deductible penalty of $2,000 per employee minus the first 30 employees.
In most cases, a consumer-driven health plan (CDHP) will meet the 60% actuarial value metal tier. To meet the minimum value, employers will need to understand the actuarial value (AV) test to determine the level of contribution to a Health Savings Account (HSA) or Health Reimbursement Account (HRA), as funding for those healthcare accounts toward the AV for contributions made in that plan year.
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Coaches' Takeaway
If an employer does not offer a qualified health plan or does not meet the affordability test, they will be subject to a penalty of $2,000 per employee (minus the first 30 employees), and the penalty is not tax deductible.
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Tools & Resources
CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.
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Library
Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.
Compliance Office
What you need to know