Shared Responsibility Guidelines

Anyone that has been following the ACA knows that compliance changes are ever present, and the employer mandate (also know as employer shared responsibility) is perhaps one of the most liquid of policies. The employer mandate was first drafted as a way to enforce employers with 50 or more FTEs (full time equivalent employees) to offer affordable minimum value (or MECs, for minimum essential coverage) health insurance coverage to their employees. While the employer mandate is still in place, some of its requirement have been changing, such as what is considered affordable. This post is to help you understand the change in what is deemed affordable for 2018, as please do know, that the affordability of the health coverage is a material portion of the employer mandate. If your coverage does not meet the affordability guidelines, then you will be subject to the penalty as the employer.

What Are The Guidelines For?

The employer mandate guidelines are meant to keep employers in compliance with the law. Every time the guidelines change, the law changes with them.

Compliance Update: Shared Responsibility Guidelines for 2018

As per Zywave’s periodical regarding the update for 2018:

For plan years beginning in 2018, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed 9.56 percent (decreased from 9.69 percent for 2017 plan years) of the employee’s household income for the year, for purposes of both the pay or play rules and premium tax credit eligibility.

 

If you have any questions regarding your policies, please call Buettner Insurance at (714) 377-0600. We are here to serve.