Get the facts! A Brief Summary of Obamacare

This website breaks down the facts and gives employers a window of expectations for Obamacare.

 

Individuals will pay $95 or 1% of their income in 2014 (whichever is higher) under the Obamacare Mandate. This increases to $325 or 2% in 2015 and $965 or 2.5% of their income in 2016 and beyond. For more facts, see the Individual Mandate Summary. Employers have new mandates effective January 2014, such as: employers with 50 full-time employees are required to provide "minimum essential coverage." There are $2,000 to $3,000 penalties for not providing "minimum essential coverage." For more facts, see the Employer Mandate Summary. These employer penalties have been delayed until 2015. Wellness Programs are a means for the Federal Government to supplement the cost of Obamacare by creating a balance of responsibility and accountability for employee health behaviors. There are 20% to 30% Incentives for qualifying programs. For more facts, see the Wellness Program Summary.

What is the Affordable Care Act (Obamacare Summary)?

This summary of The Affordable Care Act has been created to help employees and employers understand the facts, and new mandates established with Obamacare standards (effective January 2014):

These are the most important facts for each party:

Summary for employers seeking relief from The Affordable Care Act (Obamacare) Through Wellness Programs:

As of 2014, employers who choose to use health-contingent wellness programs to increase health and drive down costs can use incentives up to 30% to engage their workforce in participation. This is an increase from 20% in 2013.

To qualify, employers must provide a program that is non-discriminatory and engage employees with equal plans, opportunities, and incentives.

Individual Summary of Affordable Care Act (Obamacare) Mandates:

As of 2014, the following will apply for individuals with regard to their healthcare:

Penalties for individuals who are not properly insured:

  • 2014: $95 or 1% of income, whichever is greater.
  • 2015: $395 or 2% of income, whichever is greater.
  • 2016: $695 or 2.5% of income, whichever is greater.
  • 2017 and Beyond: $695 adjusted for inflation or 2.5% of income, whichever is greater.

*The Affordable Care Act (Obamacare) stipulates exemptions for financial hardship and other circumstances. For more facts, visit: www.orriant.com

**Families will pay half the penalty for children under 18 and the household penalty may not exceed 300% of the annual adult penalty or the annual premium for bronze level coverage offered through the exchange.

Employer Summary of Affordable Care Act (Obamacare) Mandates:

As of 2014, employers are required to provide "minimum essential coverage," if they have greater than 50 full-time employees.

Those employers who fail to provide "minimum essential coverage" will incur, starting in 2015, a $2,000 penalty for every employee over a count of 30 full-time employees. Example: This means that under The Affordable Care Act (Obamacare), an employer with 60 employees could sustain a $60,000 annual penalty for not providing "minimum essential coverage."

Employers who are in compliance with "minimum essential coverage," but still have an employee receiving subsidized coverage from an exchange will pay a $3,000 penalty for each employee receiving a subsidy or $2,000 per full-time employee, whichever is less.

When is an employee eligible for subsidized coverage under an exchange? When the employee-sponsored coverage does not have an actuarial value of at least 60% OR when the employee's share of the premium, for single coverage, exceeds 9.5% of their family W-2 income.

Employers with fewer than 50 employees are exempt from these mandates.

*All facts in these statements are true and accurate regarding The Affordable Care Act (Obamacare) as of August 2013. Any legislative changes made after publication could affect this summary. We will update this page periodically with new information. For questions, please call: 1-855-552-6366 x2.

 

The Obamacare Summary states that 2014 legislation means more costs for employers.

Manage those costs by implementing a wellness program that takes advantage of the increased wellness incentives (from 20% - prior to 2014- to 30% and up to 50% for tobacco cessation programs) now approved by the federal government under this new law.

2014 Rising Employer Healthcare Costs

 

*Only health-contingent wellness programs that comply with all the new federal regulations can take advantage of the increased incentives now being allowed by the federal government.