Click here to download our FREE summary of the Health Care Reform Law for employers. This summary includes a timeline that outlines when different phases of the law will take effect.
A quick summary of the provisions of Health Care Reform impacting employers:
- Small employers with less than 50 employees and average annual wages of $50,000 or less are eligible for a tax credit on employer contributions to health insurance premiums, if the contribution is at least 50% of the total premium.
- Employer group health plans must offer coverage to adult children up to age 26, may not impose lifetime or annual limits on benefits, and may not impose pre-existing condition exclusions.
- Over-the-counter medicines are not eligible for reimbursement from an FSA, HSA or HRA unless they are prescribed, and the maximum contribution to FSA’s is limited to $2,500 annually.
- Employers must report the value of employee’s health coverage on employee W-2 Forms.
- Medicare tax on earnings above $200,000 ($250,000 for couples filing jointly) increases from 1.45% to 2.35% for amounts paid by employees only.
- Employers with 50 or more full-time employees (defined as working at least 30 hours per week) will pay a penalty if health coverage is not provided, and will pay a penalty if the coverage provided is considered “unaffordable”. This penalty is waived for employers who offer unaffordable coverage but provide employees with a voucher to use to purchase health insurance through the Exchange.
The Health Care Reform Summary & Timeline for Employers provides more detailed information on the implementation schedule for these and other provisions.
