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Update on New ACA Rules
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A very good breakdown of the changes from RGB…

Summary of Shared Responsibility News

Employers with fewer than 50 full time equivalent employees: Not required to offer coverage in 2015, or in any year, under the Affordable Care Act.

Employers with 100 or more full time equivalent employees: New rules phase in the percentage of employees who must be offered coverage to 70 percent of full time employees in 2015 and 95 percent in 2016 and beyond, or be potentially      subject to a penalty assessment beginning in 2015. 

Employers with 50 to 99 full time equivalent employees: Must offer coverage to 95% of their full-time employees in 2016 or face potential penalty payments.

Note: Full time equivalent employees (FTE’s) are a combination of full and part time employees (see below for how to calculate). FTE’s are used to determine if an employer is subject to Shared Responsibility. FTE’s need not be offered coverage. Only full time employees (and their dependents) must be offered coverage.
To calculate Full Time Equivalent employees, add the total number of hours for all part time employees for that month, divide by 120, and add the resulting number to the number of full time employees.

Following are a few of the differences between requirements prior to yesterday’s announcement and the Final Rule to be released tomorrow.
(Note: There is a link to the Final Rule below.)
Old rule:  Employers with over 50 Full Time Equivalent employees must offer coverage or be penalized in 2015.

Final rule: Employers with over 100 Full Time Equivalent employees must offer coverage or be penalized in 2015.  Employers with 50-99 Full Time Equivalent employees must offer coverage or be penalized in 2016.

Old rule: Employers with over 50 FTE’s must offer coverage to at least 95% of full time employees or be subject to penalty in 2015.

Final rule: Employers with 100 or more FTE’s must offer coverage to at least 70% of full time employees in 2015, and 95% in 2016 or be subject to penalty.

Old rule: Employers can determine whether they had at least 50 full-time or full-time equivalent employees in the previous year by counting at least six consecutive months, instead of a full year

Final rule: For 2015 employers can determine whether they had at least 100 full-time or full-time equivalent employees in the previous year by counting at least six consecutive months, instead of a full year:

Old rule: Dependent coverage: Employers must offer coverage to their full-time employees and dependents

Final rule:  The rule that employers must offer coverage to their full-time employees and dependents will not apply in 2015 for employers that are taking steps to arrange for dependent coverage to begin in 2016.

Old rule: Dependents defined as children under age 26. Spouses are not included in the definition of dependents

Final rule: No change

Actual Treasury Press Release is HERE.

Purves Insurance is located in Davis, CA and we love to read enormous press releases.