Planning for 2015 is underway for Employer provided health insurance plans. Changes in the implementation of the Affordable Care Act have impacted the timeline and options for 2015 and beyond. Many small employers will be making a decision in August!
Following the announcement by the Federal government that its “transitional policy” would be continued for an additional two plan years, the Nebraska Department of Insurance (NDOI) issued a statement on April 30th, 2014, indicating that insurance companies may offer to policyholders who have health plans that were issued prior to 1/1/14, the option to extend those policies through 10/1/16. http://www.doi.nebraska.gov/notices/notc2014/notice02.pdf
Employer health insurance plans that renewed in 2013 expected to be required to convert to an ACA compliant plan in 2014. That changed with the NDOI statement in April. The updated requirement is that Employer provided health insurance with a plan year beginning on or after October 1, 2016 must comply with the requirements of the Affordable Care Act. Employers that have already converted to ACA plans do not have the option of returning.
Insurance carriers in Nebraska are now rolling out their programs that will allow pre-ACA plans to be continued into future years. Generally, the carriers are offering the option to keep the pre-ACA plan or move to an ACA compliant plan to small employers that have a health insurance policy that will renew between August 1 and December 31. Additionally, there may be an option to change the renewal date of the policy to September 1. This gives the employer 3 additional plan years of pre-ACA coverage (9/1/14–8/31/15; 9/1/15-8/31/16; 9/1/16-8/31/17).
Large employers are subject to different requirements in complying with the ACA. The Employer Shared Responsibility provisions of the law require large employers to provide affordable health insurance for their full-time employees or pay penalties for failing to do so. Transition relief that will allow for a gradual phase-in of these rules has been provided.
From the US Treasury Department Fact Sheet on Final Regulations Implementing Employer Shared Responsibility Under the Affordable Care Act (ACA) for 2015:
http://www.treasury.gov/press-center/press-releases/Documents/Fact%20Sheet%20021014.pdf
• While the employer responsibility provisions will generally apply starting in 2015, they will not apply until 2016 to employers with at least 50 but fewer than 100 full-time employees if the employer provides an appropriate certification described in the rules.
• Employers that are subject to the employer responsibility provisions in 2015 must offer coverage to at least 70 percent of full-time employees as one of the conditions for avoiding an assessable payment, rather than 95 percent which will begin in 2016.
The key to making the best decision for your business is to utilize the expertise of your health insurance agent. Gone are the days of simply comparing costs to select your health insurance plan!
by Chris McPike, Vice President
402-488-5100