Along with health care change, a question had been raised – does my company have to offer health insurance?
Not really. The reformed law in health care referred to as Affordable Care Act (ACA), needs specific companies to get health insurance for their employees or a corresponding penalty shall be paid. Searching for a better approach to provide medical health insurance to your workers? Check out Mutual of Omaha Medicare Supplement.
- In the reformed law, as of January 2015, companies having more than 50 full-time equivalent (FTE) workers have to offer health coverage or they pay tax consequences. This is generally known as the employer mandate.
- Companies with under 50 FTE workers aren’t governed by these tax fines because of not providing medical health insurance protection, even though if your company does offer medical health insurance they could be entitled to tax credits.
Despite the tax penalty, numerous employers exceeding 50 FTE workers will estimate the price of not offering health insurance and will prefer to provide an alternative solution for health insurance like a Health Reimbursement Arrangement (HRA). Small and start-up businesses of less than 50 workers are not required although it is still best for small businesses to provide health insurance to workers.
If my company does not offer medical health insurance, should employees need to buy medical health insurance?
On January 2014, the healthcare reform calls for most people to be protected under medical health insurance, or face tax consequences. Protection may include Medicare or Medicaid, employer-provided insurance coverage, individual medical insurance. The tax consequence stages in around 3 years and will become progressively serious. In the years 2016 and 2017, the charges is at 2.5 % of earnings or $695 or whichever is higher. Therefore if you don’t get insurance coverage, you will end up paying tax penalties once you file your income taxes each year.
Health insurance for an individual or a business is important and it has been highly stressed by the new reforms governing health care. If you don’t have a healthcare insurance yet, consider getting yourself one for your protection and the protection of your entire family as dependents.