Health care reform
Implementation of the Patient Protection and Affordable Care Act (PPACA) has featured many changes and delays. Recently, several delays in the employer mandate — also known as "pay or play" — have been announced in close succession, creating confusion among employers. Here's a chart that we hope will make it clear:
* Employees = Full-time equivalent employees (FTEs)
These changes have had no impact on small businesses — those with fewer than 50 employees.
Unum provides a new tool to help employers with the pay or play decision. Use our new pay or play interactive tool as an exploratory tool to find out whether you may be subject to the employer mandate — and what penalties you may face.
Employers with 50 to 99 FTEs get an additional nine-month reprieve before they must offer qualified medical benefits. Employers with 100 or more employees have to offer coverage to just 70% of their full-time employees until 2016. Both of these delays give employers transitional relief and extra time to bring their health coverage offerings into compliance with the law.
Employees at companies with 50 to 99 employees may see their employers delay changes to their medical coverage until October 2016. Employees at companies with 100 or more employees should be aware of two important dates: 1) by January 2015, those employers must offer affordable cover to at least 70% of their employees; and 2) by January 2016 affordable coverage must be offered to at least 95% of their employees. Depending on how those employers choose to meet those deadlines, employees may be offered differing types of plan options.