Issue link: https://read.dmtmag.com/i/107993
INSURANCE ISSUES The Future is Getting Closer Every Day PPACA (or ACA) is much bigger, broader, and far reaching than this short narrative addresses. As has been the case in other government programs, its future implementation will be significantly influenced by politics. As a result of the fluid environment in which it is being developed, the act and its provisions require close monitoring. However, the provisions that will have the greatest impact are still fifteen months away. Today's primary focus for employers should be on selecting a benefit plan that employees value, while encouraging wise choices necessary to contain health care and health insurance costs. Help is Available In our estimate, and those of several government studies, the vast majority of business owners will continue to provide an employer-sponsored health insurance benefit for their employees. Discontinuing this benefit could adversely impact the small employer's ability to attract the necessary talent to compete in their marketplace. employee, per year—but only on the number of full-time employees in excess of 30. In essence, no penalty applies to the first 30 full-time employees. If an employer chooses to offer insurance coverage, but the plan offered is not "valuable" or not "affordable," the employer is subject to a $3,000 per year penalty for any fulltime employee who purchases coverage through the public Exchange and receives a tax credit subsidy to do so. The logic behind both penalties appears to be that if larger employers either don't offer coverage to employees, or offer coverage that is insufficient or costs too much to the participant, then those employers should pay a fine to fund the provision of a tax credit subsidy to the employees. In this way, the federal government is encouraging larger employers to provide acceptable benefits to their employees so the federal government doesn't need to provide funding for those employees to get quality, affordable insurance. However, wading through the numerous health reform changes can be overwhelming and confusing. And since many of the rules relating to implementation of PPACA are still being developed, business owners will need assistance to sort out how health reform impacts them. These are exactly the times that it is critical to work with an insurer who is knowledgeable about your business and the health care law. This article is intended to highlight current issues and provide general information on the PPACA only. It should not be considered legal advice regarding your specific facts or circumstances. The information herein is accurate as of September 2012 and is subject to change. Please consult a qualified professional with questions regarding the topics in this article. © 2012 Federated Mutual Insurance Company It's Our Business to Protect Yours® This publication is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business, or your customers. You should always consult your personal attorney and insurance advisor for advice unique to you and your business. © 2008 Federated Mutual Insurance Company. All rights reserved. WINTER 2013 OIL PROPHETS 27