Small Businesses Must Offer Health Care for ACA Compliance
Small business owners have faced a lot of change because of Obamacare. There are more changes to come in 2016. It has been three years since the Affordable Care Act has been put into effect.
The Affordable Care Act in Effect
The Affordable Care Act has gone through a few changes since it has been put in effect. Small business owners are expected to keep their nimbleness as they comply with the new rules. The new year will require more owners of small businesses to offer coverage. There will be an increase in needed paperwork to remain in compliance with the law for small and medium sized companies.
Rises in Costs
Insurance costs will be rising in some areas as well. This means a lot of trouble for small business owners. They are already having trouble with the current Obamacare act as it stands.
Expect the Unexpected
Small business owners should be prepared for what they don’t expect. The only thing they can do is make the best plans that they can to deal with the constantly changing Affordable Care Act. This means that small businesses have to plan for all types of scenarios that they can think about.
More Small Business Owners Must Offer Coverage
Small business experts call the employer mandate for Obamacare one of the major changes for 2016. This year requires businesses with between 50 and 99 full time employees to provide coverage for 95 percent of the employers at the minimum. Small businesses were originally exempt from this rule. However, changes have included small businesses.
Fines and Penalties for Small Businesses
The businesses of at least 50 employees are going to be hit the hardest from the new law. They will also be faced with a fine of up to $2,000 if they don’t comply to the standards of the law. Many businesses are going to be faced with the pain of adapting to the Affordable Care Act.
Awareness and Planning
Many businesses were aware of the change that was coming. The businesses that were unaware are faced with new requirements for compliance. One thing to note is that the Affordable Care Act is written by lawyers and is complex and unclear. Business owners have a hard time understanding the Affordable Care Act.
Small Business Owners and Employer Mandate
The employer mandate for 2016 requires business owners to offer health coverage for full-time employees. This can confuse business owners because 30 hours a week is considered full-time. 130 hours a month can also count as full-time. This leaves the business with the task of calculating hours to learn whether or not it needs to offer health insurance.
Documentation and Notifications
There are also plenty of notifications and documentations that are required for compliance. This includes reporting to employees about the marketplace of health care. There is a waiting period of a 90 day maximum for offering health insurance to new employees. Employees are to be presented with a Summary of Benefits and Coverage Form.
Possible Audit Increases
Trying to comply with health care coverage reporting is going to cause a lot of headaches. Businesses could wind up with audits that cost a lot of time and money just for one tiny slip up. The lack of appropriate disclosing and documentation is what causing employers to face a lot of audits. Small businesses are at a disadvantage because they don’t have a company attorney to help with the taxes.
Higher Premiums with Lesser Choices
Small business owners have to deal with the complexity of the Affordable Care Act. They also have to deal with higher premiums in the coming year. This is one of the major gripes of small businesses.
Small Businesses Shell Out Money
In 2014, the premiums have increased by as much as 20 percent. In 2016, there will be a 5 to 8 percent increase in premiums which is not as bad as in 2014. However, small businesses have to pay a lot more for healthcare this year. This leaves small businesses with the task of figuring out the increase.
How to Cover the Increase
Among the ways to cover the increase include having the employer continue to cover it. The employer does have the option of shifting the cost over to the employee. To top it off, there are insurers that are actually leaving. This leaves people with fewer options and higher premiums.
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