How to Keep Your Employees Out of the Penalty Box
Did you know that every American is required to have health insurance coverage as of 1/1/2014? Regardless of the health insurance plan you offer at your waste or recycling facility, employees that choose not to insure themselves could be looking at an annual penalty. These penalties break down as follows over the next two years:
- If employees choose to go without health insurance coverage in 2015, the penalty will be the greater of 2% of their family income or $325 per adult and $162.50 per child (capped at $975).
- If employees choose to go without health insurance coverage in 2016, the penalty will be the greater of 2.5% of their family income or $695 per adult and $347.50 per child (capped at $2,085).
What can you do to help employees get the health coverage they need and avoid penalties?
- Ensure that the plans being offered by your company meet the Affordable Care Act (ACA) requirements.
- Confirm and communicate when your company’s open enrollment will take place and for what effective date.
- Inform them that they can explore options outside of their employer by logging on to www.healthcare.gov during the Federal Exchange open enrollment period of 11/15/14 – 2/15/15.
- Ensure they understand that should they waive health coverage during the open enrollment period, they won’t be eligible to enroll until next year’s annual open enrollment period, unless they have a qualifying event.
- Inform them that a gap in coverage of more than 90 consecutive days will mean they incur an individual penalty.
Keeping employees healthy and ensuring they’re taking their health seriously can impact everything from Workers’ Compensation costs to levels of productivity at your plant or facility. Take action now and encourage your employees to remain happy, healthy and penalty free by electing the right kind of coverage this open enrollment season.
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