Under the Affordable Care Act (ACA), understanding the relationship between employee income, health insurance premiums, and plan participation is critical, because your employees’ circumstances can potentially create costly tax penalties for you. Read this white paper to help understand ACA penalty drivers and ways to minimize penalties.
The ACA’s Shared Responsibility requirements are among the most significant and complex provisions of the ACA. They place a compliance responsibility on individuals to obtain at least a minimum of healthcare coverage and on employers to offer their employees an affordable health plan that provides a minimum value. This white paper focuses on the relationship between employee income and plan participation rates, and discusses how substantial tax penalties are encouraging ACA compliance measures.
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The proposed regulations interpreting Shared Responsibility establish 9.5% of an individual’s wages as one of the “affordability thresholds” for employer-sponsored healthcare coverage. Read this white paper to learn about the relationship between employee income and plan participation rates, and how your knowledge of premium thresholds can help mitigate tax penalties, while helping your employees obtain the minimum-acceptable coverage they need.
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Planning For Health Care Reform: How Income Impacts Employee Health Benefits Participation
Download our complimentary white paper, “Planning For Health Care Reform: How Income Impacts Employee Health Benefits Participation.” Gain insight into plan participation and ACA cost thresholds, and the relationship between employee income levels and participation rates in employer group health plans.
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*A complete list of sources and citations can be found in the full report.
About This Report: Conducted by ADP Research Institute, a specialized group within ADP, this study is based on 2012 actual, aggregated and anonymous employee-level data from approximately 300 ADP health and benefits clients. All states and major industries are covered, as well as employee gender, age, and marital status. Each of the companies in the study has 1,000 or more employees, including both full-time and part-time workers. Due to the small data set population of union employees, only nonunion employees are considered in this analysis.