Employer Mandate made simple for employers, San Jose, CA

There is a lot of misinformation out there about the Employer Mandate.  I should actually write a book, or at least an article on the the ACA Employer Mandate made simple for employers.  If you are an employer with under 50 employees, you will never, so they tell us, be required to provide Health Insurance for your employees.  Employers with between 50-99 employees are off the hook for 2015, but will be mandatory for 2016.  If you have over 100 full time and full time equivalent, you must offer coverage to your people, but January 1, 2015.  Now here’s the million dollar question…..what happens if the employer offers the coverage and the employees don’t sign up?  All the carriers have minimum participation thresholds of typically 70-75% of enrollment.  Where do we stand with the Employer Mandate if the employer has a 25% enrollment?  No one seems to have the answer.

Employers that are nervous about the Employer Mandate and how it affects them and their business

There are many employers that are either confused or nervous about the Employer Mandate and how it would affect them.  They either have a broker that is not a Health Insurance specialist or they simply are not versed on the complexities of the Affordable Care Act.  My best advice is to find an agency and/or broker that is a specialist…not a General Practitioner.  They should have the most up to date info on the ACA.  Its just too important to risk having someone that is not an expert.  There are way too many penalties for non compliance.

Employer Mandate penalties for non compliance from the Dept of Labor and/or IRS

Well to start, the penalty for not complying with the Employer Mandate of the Affordable Care Act is $2000 per employee per year, minus the first 30, if you just don’t offer any coverage.  If you do offer coverage and it is not in compliance, either with your contribution as an employer or the plan is not ACA compliant, you will be assessed $3000 for every person that goes to the CA Health Exchange and receives a subsidy.  The DOL is not fooling around with the Employer Mandate and how they will be enforcing.  Brauer Insurance is no the cutting edge of the ACA and helps many larger clients get and stay compliant.  Call us for some expert advice!

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