As far as health insurance is concerned, a large group employer is defined as more than 50 full-time equivalent employees (FTEs). As for how to determine if you have 50 or more FTEs, check out this post.
Large businesses will have 3 basic health care options come 2014:
- Offer employees a fully insured or ASO plan that is both affordable* and meets minimum Essential Health Benefits.
- Offer a plan that does not meet these requirements and pay an employer penalty.
- Opt to not offer any insurance to employees and pay an employer penalty.
Penalties for failing to offer coverage are as follows:
- $2000 per each employee after the first 30 (a company with 55 employees would pay a fine on 25 of them) if one worker buys a subsidized plan through the exchange
- $3000 for each employee getting subsidized coverage if the plans offered through the employer are not considered affordable* for the employee
*Affordable is defined as less than 9.5% of an employee’s compensation, as reported in box 1 of a W-2
Other changes to come:
- Waiting periods may not exceed 90 days before health insurance becomes effective for new hires
- Increased reporting to the Secretary of the Treasury including details regarding employer offered health insurance plans (waiting period, premiums, costs of benefits and how much the employer pays)
- All plans to be guaranteed issue (no one can be denied due to preexisting conditions)