How can large employers avoid penalties?

January 1, 2015 is fast approaching. Employers with 100+ full time employees are looking for ways to avoid ACA healthcare penalties in a timely and cost-effective manner. Many penalty avoidance plans with names such as the Limited, Mini-Med, Skinny and MEC have risen. Employers have also considered or implemented reducing employees’ hours from full-time to part-time. For many industries, this is just not workable; for others, it is.

At AAIB, we found the “lowest cost” solution that meets all ACA requirements, avoids all penalties, and provides great benefits to employees ($15 office visit copay using PPO providers). With this plan employers can afford to offer employees Option 4 below. Here are your options:

Option #1
> NO health plan offered
> $2,000 per employee per year penalty

Option #2
> Offer employees “Minimum Essential Coverage (MEC)”
> Avoids “no health plan” penalty but,
> Assesses “not minimum value” penalty of $3,000 per employee per year

Option #3
> Offer employees standard health insurance plan w/ traditional insurance carrier
> Pay at least 50% of employees’ premium cost
> Minimum 70-75% of eligible employees must enroll

> Offer employees affordable “Minimum Value Plan (MVP)” and eliminate both ACA penalties
> Only 10% or 20 employees (whichever is greater) needed to participate

Click on our Employer Cost Analysis Calculator, a fully functional and interactive spreadsheet that allows you to plug in your company’s worker’s comp rate, corporate tax rate and # of employees within your organization. Once these numbers are adjusted to your liking, the calculator will instantly project costs for your options above. If you are interested in obtaining a firm proposal for your company, please call Gary at (888)474-6627 ext. 116. We will have you submit your Excel employee census data (date of birth, gender, home zip code). We look forward to assisting you! For more information on ACA Penalties, here is the ACA Penalties Link, presented to you directly from the IRS website.


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