Health care law: Next steps for employers

The federal government has now published most of the regulations to explain how the Affordable Care Act affects employers. But the regulations are complex, and putting them into operation in a restaurant business will be challenging.

The pressure is on: Starting Jan. 1, 2015, many employers could face potential penalties for failing to offer health plans to full-time employees. Hundreds of thousands of employers will have to start tracking new data in 2015 as they prepare to file ACA-required reports with the Internal Revenue Service and employees in early 2016.

The National Restaurant Association, with other organizations representing millions of employers, continues to ramp up the heat on Congress to make changes in the law. But as the law continues to unfold in the meantime, here’s a look at some key questions for employers.

Q: Which employers will face penalties under the ACA? 
The ACA’s employer mandate begins to take effect in 2015. The mandate subjects “applicable large employers” to possible penalties if they don’t offer health plans to full-time employees and their dependents. Penalties are phased in:

Penalties start in 2015 for employers with 100 or more full-time-equivalent employees who fail to offer health care coverage to “substantially all” full-time employees and their dependents. (“Substantially all” means the employer offers coverage to at least 70 percent of full-time employees in 2015. In 2016, this ramps up: Applicable large employers must make coverage offers to at least 95 percent of full-time employees to avoid possible penalties.)
 

Penalties start in 2016 for employers with 50 to 99 full-time-equivalent employees.  The transition relief for these employers through 2015 applies as long as they meet certain conditions, including not cutting back employees’ hours or positions in 2015 to keep the business under the 100-FTE employee threshold.

Employers still obligated to notify employees despite missed deadline

Although the October 1 deadline has passed for employers to notify employees of the Health Care Marketplaces, it is still necessary for employers to do so. The reasoning for notification is two-fold—to inform employees that they need to obtain coverage on the exchange if they are not covered; and to protect you should an employee have an unpaid medical bill and a creditor is seeking payment.

The Health Care Marketplaces opened last week across the country. Despite the government shutdown, the Affordable Care Act is still in effect.

The National Restaurant Association launched its Online Notification Tool to assist employers in informing their employees about the ACA requirement. The individual mandate means that uncovered employees will need to obtain coverage on the Health Care Marketplace between Oct. 1, 2013 and Feb. 28, 2014.

For more information about the NRA’s Online Notification Tool and to review the Health Care Primer, visit www.restaurant.org/healthcare.  

Employee Notification Deadline Oct. 1

The phone is ringing off the hook at the Louisiana Restaurant Association with questions about the upcoming deadline to notify employees of the Health Care Marketplace/exchanges opening Oct. 1, 2013.

What does that mean for you as an employer? It means that first you need to determine if you are a large or small employer. To calculate your full-time equivalent employees, download the free National Restaurant Association Health Care Primer here.

Once you’ve determined your size (large or small) under the Affordable Care Act, then you will complete the notification form and distribute to your employees to read it and sign that they understand.

What individuals need to know? If you work for a small company and are not eligible for coverage through your employer, you must obtain coverage on the Health Care Marketplace beginning October 1, 2013 to February 28, 2014. Based on your annual salary, you may be eligible for government subsidies through the marketplace at healthcare.gov.

 

To view the previous blog post about the Employee Notification Tool from the National Restaurant Association and the Restaurant Health Care Alliance, click here.

If you have questions, please call the LRA at (504) 454-2277 today and we’ll be happy to help.

Health Care Knowledge Center to debut at NRA Show

Industry operators seeking answers on how to comply with the 2010 Health Care Act can obtain information at the National Restaurant Association Restaurant, Hotel-Motel Show’s Health Care Knowledge Center, May 18-21, at McCormick Place in Chicago.

 

The knowledge center will offer show attendees the opportunity to meet one-on-one with independent, restaurant-focused, health care reform consultants who can address the challenges related to the law.

“The impending implementation of the health care law is raising a lot of questions,” said Jeffrey W. Davis, CEO of the United States Beef Corporation and convention chair for this year’s NRA Show. “Whether you’re an owner-operator, a franchisee, or a human-resources executive at a chain restaurant, you need to understand how it applies to your operation and how to prepare for it. That’s why we have assembled a team of experts with more than 120 years of health care and employee benefit experience to tackle those questions for you   so you can go home confident and ready to take care of your business and employees.”

Visit the website for more information on the Health Care Knowledge Center or to apply for a free appointment. Also, read more about how to prepare for the health care law here.

In addition to showcasing the knowledge center, three health care-focused education sessions will be offered twice each during this year’s show to maximize attendance. The sessions will provide big-picture knowledge as well as detailed overviews based on operation size. Visit the Education page for a full list of sessions and times.