As fall progresses, we are seeing more parts of the Affordable Care Act (also known as Obamacare) come into effect. This posting will serve to answer a few of the questions we get most often from clients.
Do I have to insure my employees?
If you have fewer than 50 full-time equivalents (FTE’s) the answer is no. What is an FTE? Think of it this way: full-time is defined as 40 hours per week, 52 weeks per year. If you have one person working 40 hours per week all year including paid time off, they are one FTE. If you have two people each working 20 hours per week for a total of 40 hours, you also have one FTE. Owners and their family members are not included in this calculation.
If you have 50 or more FTE’s and do not provide “minimum essential coverage” (defined later), you may face penalties starting in 2015.
What is the health care exchange?
The exchange, which in Minnesota is called MNSure, allows individuals and businesses with fewer than 50 FTE’s to shop for health insurance policies in a more competitive, and hopefully easy to use environment. The idea is to create a one-stop-shop for these groups to compare coverage options and costs, and to choose the plan that is best for them. The MNSure system goes live in October, 2013, with plan coverage starting in January, 2014.
The decisions needing to be made as a result of the Affordable Care Act are complex, and will need to be made at a quicker pace as months go by. As always, we’re here to help you sort out the details and make the right decisions for you and your business.
