Delaying the Employer Shared Responsibility Mandate Through the Affordable Care Act
The Affordable Care Act (ACA) includes an employer shared responsibility that requires businesses with more than 50 full-time equivalent (FTE) employees to offer health insurance to those who work an average of 30 hours a week. To learn more about how to figure out how many FTE employees you may have, visit The U.S. Small Business Administration website..
Specifically, the ACA requires large employers to provide affordable coverage that meets a minimum value. Affordability means premiums for a self-only policy can cost no more than 9.5 percent of an employee's household income. Employers must also offer coverage that meets minimum value, which means employers will cover approximately 60 percent of the health insurance premiums for the workers' coverage. If employer coverage is not affordable or does not meet minimum value, the employee could be eligible for a subsidy through NY State of Health, New York's marketplace for health coverage.
The employer shared responsibility was scheduled to take effect on January 1, 2014. However, last July the mandate was delayed until July 1, 2015. In February 2014, the Obama administration made further changes to the implementation of the mandate in its final version. Some of the changes include:
· Employers with 50 to 99 FTE employees are not subject
to the employer responsibility until January 1, 2016.
· Employers with 100 or more FTE employees will
need to offer affordable coverage to 70 percent of their full-time employees
beginning January 1, 2015. In 2016, they will need to comply with the ACA
provision and offer coverage to 95 percent of their full-time employees.
· The final ruling released in February does not change the requirements for employers with fewer than 50 full-time employees. Employers with fewer than 50 full-time equivalent employees are still not required to provide coverage to employees.
If you'd like to read the final regulations regarding the employer shared responsibility for 2015, view the fact sheet the U.S. Treasury Department released.