CalNonprofits Articles

Additional Delay to the ACA Employer Mandate

On February 10, the US Treasury Department announced further delay to the ACA employer mandate. The law requires that employers with 50 or more employees who work 30 or more hours per week provide quality, affordable health insurance to their employees. The announcement from the Treasury does not change the law, but a penalty will not be instituted for not complying this year. According to the Treasury, compliance will be required as follows:

  • Employers with 50–99 full-time equivalent employees are required to comply by 2016
  • Employers with 100 or more full-time equivalent employees are required to comply by 2015

Additionally, employers subject to the mandate next year will not pay a penalty if they cover at least 70% of their eligible staff. In 2016, however, all employers subject to the mandate will be required to offer health care coverage to 95% of their eligible staff.

For more information, click on the Treasury Department press release and fact sheet.

Changes in Small Business Health Options Program (SHOP) Enrollment Process

California’s Health Benefits Exchange, also known as Covered California, announced that it suspended its online enrollment process on February 12. Online enrollment is anticipated to open again in the fall of 2014. In a press release, Covered California’s Executive Director stated that the SHOP online enrollment portal was “not meeting the needs of agents and small employers and needed improvements.”

Covered California will continue to enroll small businesses through SHOP using traditional paper forms. According to Covered California, nearly 600 groups (approximately 4,490 individuals) were enrolled through the SHOP program as of January 31, 2014, a majority of which were done through paper applications.

CalNonprofits Insurance Services (CIS) participates in the enrollment assistance process for SHOP as Certified Insurance Agents. Additionally CIS has extended its services to employee dependents and uninsured employees of existing CIS clients, helping them to enroll in individual health insurance through Covered California. Click here for more information. And remember - the last day to enroll in a Covered California individual plan is March 31, 2014; if you miss that deadline you'll have to wait until November.

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