We began our series of posts on the Affordable Care Act (ACA) and its effect on employers of all sizes with an overview of how penalties will be determined for employers who do not offer “affordable coverage”(see EMPLOYER SHARED RESPONSIBILITY AND THE AFFORDABLE CARE ACT) .
Next week, we will look at the 9480H(a) or “failure-to-offer” penalty and the following week we will examine the 9480H(b) or “affordability” penalty in greater detail.
As we discuss these penalties, many terms will be used that will need further definition and explanation. After the overview of the two penalties, we will spend the next few posts describing those terms in detail and will show what they mean for you and your company. By the end of this series, you will be equipped with the information you need to help guide your company through the transition.
Here are the terms and questions we will address:
- What is minimum essential coverage?
- Are there exemptions for certain large employers?
- What if my state does not have an exchange? Do these rules still apply to me?
- What is an eligible employer-sponsored plan?
- What are the rules for determining employer size?
- What are the premium tax credit and the cost-sharing reduction and how are they calculated?
- For ACA purposes, what is a full-time employee?
- How do I calculate full-time equivalents for my company?
- Who is classified as a dependent?
- What is a measurement period?
- What is a stability period?
If you have questions about the Affordable Care Act that are not addressed in our posts, please let us know and we will try to answer them in a future blog.