ObamaCare: What Small Business Can Expect in 2013 and Preparing for 2014

Transcription

1 ObamaCare: What Small Business Can Expect in 2013 and Preparing for 2014 Kevin Kuhlman and Dr. Bob Graboyes, National Federation of Independent Business

2 Meet Our Speakers Kevin Kuhlman Manager Legislative Affairs, NFIB Dr. Bob Graboyes Senior Fellow for Health and Economics, NFIB Research Foundation

3 While much uncertainty still exists and many formal regulations remain outstanding, ObamaCare is the law of the land and businesses must begin preparing for its impact now.

4 In this webinar Important ObamaCare definitions and terms What kicks in next year? What will 2014 bring? Large Employer Responsibilities Small Employer Responsibilities Question & Answer

5 Your obligations will depend critically on your size, your insurance, and your workforce. ObamaCare creates new employer definitions and terms. What do all the new terms mean?

6 ObamaCare Glossary Your Business Employer common-law test, affiliated and group structure Large business 50 or more full-time equivalent employees (FTEs) Small business fewer than 50 FTEs Qualified employer SHOP Exchange-eligible employer Employer mandate large businesses must offer insurance that is affordable (as defined by the law) and meets minimum value to full-time employees (and dependents) or pay penalties $2,000 non-offering penalties (30 free full-time employees) $3,000 unaffordability/minimum value penalty

7 ObamaCare Glossary Your Insurance Essential Health Benefits (EHB) minimum benefits package Actuarial Value/Minimum Value (AV/MV) minimum plan generosity Deductible limits* - $2,000 individual, $4,000 family Exchanges Individual Exchange v. SHOP Exchange State-Based Exchanges v. Federally-Facilitated (FFE) Exchanges v. Federally-Facilitated Partnership Exchanges Qualified health plans Insurance Market Reforms Guaranteed issue, modified community rating, prohibition of annual/lifetime caps on benefits

8 ObamaCare Glossary Your Employees Individual Mandate nearly all individuals must maintain minimum essential coverage or pay individual mandate tax Employee common-law test definition, NOT leased employees Full-time Employee 30 hours/week avg (130 hours/mo avg) Look-back measurement period avg hours over previous 3-12 mos Sustainability period offer/non-offer for subsequent 6-12 mos Full-time Equivalent (FTE) Employee total monthly part-time hours/120 Seasonal Employee - <120 days/calendar year Reasonable, good faith interpretation through 2014 Affordability Test premium >9.5% of household income Affordability Safe Harbor self-only portion of lowest cost health insurance plan s premium >9.5% of Box 1 of employee W-2 Qualified Employee Individual or SHOP Exchange-eligible employee

9 The next two years will see a cascade of new regulations and taxes and that will impact your business, your insurance, and your employees. What s coming next?

10 2013 Year of Planning Your Compliance Determine business size large or small Determine full-time status of employees Notice of Exchange availability Provide employees Summary of Benefits Coverage (SBC) Distribute Medical Loss Ratio (MLR) rebates to employees Disclose health insurance costs on employee s W-2 forms (>250 W-2s) Your Taxes Increased Medicare Surtax (0.9%), New Investment Tax (3.8%) $2,500 Cap on FSA Contributions Increase threshold for medical expense deductibility Taxes on medical devices

11 2014 Year of Impact Your Compliance Employer mandate Verification of employee health insurance coverage Individual mandate Auto-enrollment (>200 employees) delayed Antidiscrimination requirements delayed Your Taxes Employer mandate penalties Individual mandate tax Annual Small Business Health Insurance Tax (HIT) - $400-$500 annual premium increase Temporary Reinsurance Fee - $60-$84 three-year premium increase

12 While large employers will have more ObamaCare responsibilities, the law impacts small employers, as well. Don t panic, plan.

13 Your Business Large Employers Employer mandate requirements and penalties Reporting/Verification of employee health insurance coverage 90-day waiting period limit Auto-enrollment (>250 employees) Disclose health insurance costs on employee s W-2 forms (>250 W-2s) Your Insurance Minimum value (60% actuarial value NOT employer contribution %) Antidiscrimination requirements delayed Your Employees Individual mandate expectations Look-back/sustainability period Affordability test/safe-harbor

14 Your Business Small Employers Reporting/Verification of employee coverage (offering employers) Notice of Exchange availability Temporary small business tax credit Your Insurance All insurance market reforms EHB, AV, deductible limits*, annual/lifetime cap elimination, etc. 60% Actuarial value (NOT employer contribution %) SHOP Exchange eligible (potential minimum participation levels) Annual Small Business Health Insurance Tax (HIT) Antidiscrimination requirements delayed Your employees Individual mandate expectations

15 Many outstanding questions remain Any questions???

16 Valuable Resources NFIB Healthcare Website - HHS Regulations Website IRS Regulations Website Provisions Wall Street Journal article on 2013 changes html New York Times article on 2013 taxes -

17 You may contact Kevin and Dr. Bob directly at: Kevin Kuhlman, (202) , Dr. Bob Graboyes, (202) ,