This article applies to Virginia Small Group and Large Group
For 2015, the Affordable Care Act (ACA) requires large companies with 50 or more employees to offer minimum value, affordable health care coverage to their full-time employees or face a penalty. This is called the Employer Shared Responsibility Mandate.
Some midsize businesses with 51-100 employees may have been allowed to delay meeting the aca requirements for midsize business until 2016, if they have met certain conditions for transition relief.
But by January 1, 2016, all midsize employers with 51-100 full-time employees and equivalents (FTEs) must comply with this mandate. Also, as of 2016 employers must offer minimum value, affordable health coverage to 95% of their full-time employees. Employers with 50 or more employees who fail to prepare properly will face penalties.
Preparing for 2016
Midsize employers should already be counting how many FTEs they had in 2014 and how many they have during 2015. This number will determine their need to comply with the 2016 deadline. The U.S. Small Business Administration offers the following guidance to help determine how many FTEs employers have.
Employer Mandate Reporting
The Internal Revenue Service (IRS) will use Form 1094-C and Form 1095-C (one for each employee) to capture information from employers. Groups with 50 or more full-time employees will be required to send these. This is called Employer Mandate Reporting or IRS Code Section 6056 Reporting. It will determine ACA compliance and whether the group will owe a penalty under the Employer Shared Responsibility mandate. Here are the instructions, although reporting is not required until 2016 for the 2015 coverage year.
This information is written by Donald Parker of Anthem Blue Cross Blue Shield
Read this fact sheet for more about Employer Mandate Reporting.
Read the full report here.
Contact Steven G. Cosby, MHSA, Group Health Insurance Broker and Agent with Cosby Insurance Group, with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.
