The Affordable Care Act (ACA) is a federal law that aims to improve the quality and affordability of health insurance in the United States. The ACA has several provisions that affect employers and their employees, such as:
- The Health Insurance Marketplace: The Marketplace is a platform where individuals and small businesses can compare and purchase health insurance plans. Nebraska has a federal Marketplace, which means that the federal government runs it. The Marketplace offers premium tax credits and cost-sharing reductions to help eligible low- and middle-income individuals and families afford health insurance. In 2021, two companies provide statewide health care plans on the Nebraska Marketplace: Medica and Oscar Health.
- The Employer Shared Responsibility Provision: This provision requires employers with 50 or more full-time equivalent (FTE) employees to offer affordable and minimum-value health insurance to their full-time employees and their dependents or pay a penalty if at least one of their employees receives a premium tax credit through the Marketplace. The penalty amount depends on whether the employer offers coverage or not, and how many employees receive the tax credit. In 2021, the penalty for not offering coverage is $2,700 per full-time employee (minus the first 30), and the penalty for offering coverage that is not affordable or does not meet the minimum value standard is $4,060 per employee who receives the tax credit.
- The Small Business Health Care Tax Credit: This credit is available to eligible small employers who have fewer than 25 FTE employees with average annual wages of less than $50,000, and who pay at least 50% of the premiums for their employees’ health insurance through the SHOP Marketplace. The SHOP Marketplace is a part of the Health Insurance Marketplace that caters to small businesses. The credit can be worth up to 50% of the employer’s contribution to the premiums and can be claimed for two consecutive years. The credit is higher for employers with fewer than 10 FTE employees and lower average wages.
- The Employer Notice Requirement: This requirement obliges employers to inform their employees about the availability of the Health Insurance Marketplace, the potential eligibility for premium tax credits and cost-sharing reductions, and the implications of purchasing coverage through the Marketplace instead of the employer’s plan. Employers can use a model notice provided by the Department of Labor or create their own notice that meets the content requirements.
As an employer in Nebraska, you may have questions about how the ACA affects your business and your employees. At Vesta Employee Benefit Solutions, we are here to help you navigate the complex and changing landscape of health insurance. We can help you:
- Determine your eligibility for the Small Business Health Care Tax Credit and how to claim it.
- Compare and select the best health insurance plans for your business and your employees through the SHOP Marketplace or other sources.
- Comply with the Employer Shared Responsibility Provision and avoid or minimize the penalties.
- Provide the required notice to your employees about the Health Insurance Marketplace and their options.
- Educate your employees about the benefits and costs of health insurance and how to enroll in a plan.
We are a team of experienced and certified benefit specialists who are committed to providing you with personalized and professional service. We have the knowledge and expertise to help you find the best solutions for your health insurance needs. Contact us today to schedule a free consultation and get a quote. We look forward to working with you.