Impact Of The Affordable Care Act And Understanding Your Choices

by Cal Kellogg, Arkansas Blue Cross and Blue Shield  on Monday, Aug. 12, 2013 12:00 am  

Cal Kellogg

Most will not receive enough (if any) advance premium tax credit (subsidy) to offset the higher premium cost.

If you increase the income of your employees to help offset the loss of your health insurance contribution, you are replacing a benefit that is tax deductible for both you and your employees (health insurance) with one that is taxable for both you and your employees (more W-2 income).

Additionally, in the early years, the health insurance marketplace is not likely to run smoothly or efficiently. Employees at all income levels may find the process challenging.

Premium levels also may be unstable as two of the three federal programs, which will serve to stabilize the individual insurance market, expire after 2016.

Unprecedented Change

No question, the new health care law is complex, many of the guidelines for implementation still are not final, and there are likely to be changes still to come in the regulations.

Employers are faced with many tough decisions during the next several years in this historic transition in health care. Stay informed and seek guidance from a trusted resource.



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