With Health Care Reform (Affordable Care Act) (ACA), business owners want to know:
- What’s going to change?
- How much will it cost? and,
- What can I do to save money.
We’ve created a short video that addresses these questions. http://www.youtube.com/watch?v=RcQ5j8mu_Bk
The video also describes what will not change, including:
- No requirement for small businesses to offer benefits;
- Benefits continue to be a tax deductible expense for the employer and non-taxable compensation to employees;
- Benefits continue to be an excellent way to attract and retain good employees.
Things that change include:
- Standardized benefits;
- Rating system to determine the monthly cost (premium);
- W-2 employees are required; and,
- New hire waiting period reduced to 60 days in California and 90 days in other states.
To address the cost question, we look at a few changes from the ACA:
- Risk Adjustment Factor (RAF) goes away;
- Employee Rate based on exact age – not a range, (e.g., 31 year old rate vs. 30-39 year old rate);
- Each dependent spouse or child will have a separate rate based on age.
To pay less, suggestions include:
- Renew Early (December 2013)
- Use an RAF Special if your group qualifies
In 2014 –
- Use plans with smaller provider networks
- Use plans with higher deductibles
- Look closely at the Small Business Health Insurance Tax Credit
- Get good advice from an agent that specializes in health insurance and employee benefits (like www.BenefitsCafe.com).