Under the provisions of the Affordable Care Act, employers were mandated to provide affordable medical coverage to their employees and non-adherence to which may lead to heavy penalties. The provisions were set to come into action by 2014, but the employer mandate got delayed to 2015 or 2016, on the basis of the employer’s size.
Here are the major highlights of the mandate for 2015 that the businesses and health insurance professionals need to know:
Employers with less than 50 Full-Time Employees are exempted from the mandate and related penalties. This means that these employers don’t need to offer the health coverage and are not subjected to employer shared responsibility penalties.
Employers with 50 to 99 Full-Time Employees are given relaxation till 2016 before the employer mandate and employer-shared responsibility penalties apply.
Employers having more than 100 Full-Time Employees are subjected to the mandate and penalties from 2015. However, they are given flexibility till 2015, that the employers satisfy the mandate if they offer coverage to 70% full-time employees in 2015, and to 95% in 2016.
Altogether, only the larger employers with 100+ full time employees are under scrutiny for providing coverage to employees, while others, small-sized and mid-sized employers are given relaxation. These are the major employer mandates that should be kept in mind while making preparation for the benefit enrollments this year!
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