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Employers Try To Prepare For New ObamaCare Fee in 2014.

Employers are trying to prepare for a little-noticed fee in the Obama administration’s new federal health-care law that will charge them $63 for each person they provide health insurance for in 2014 and beyond. This additional fee is one of the clearest cost increases companies face when the new law takes full effect. It has been calculated that companies and other plan providers will pay $25 billion over three years to create a fund for insurance companies to offset the cost of covering people with high medical bills.

The $63 fee will apply to plans covering millions of Americans in 2014. The ObamaCare program applies to employers that assume the risk for workers’ medical bills, in other words are “self-insured”, and many private plans sold by insurers. The fee is scheduled to be smaller for 2015 and 2016 as the fund balance grows.  However, it is noted that at this time regulators have not set those fee amounts for those years.

The fee was apparently heavily lobbied for by the insurance industry as they claim it will help offset the cost of providing health coverage for those individuals with pre-existing conditions. The new law forbids insurance companies from denying coverage to those individuals. Insurers claim that the fee will help maintain or even lower the cost of health insurance in general.

Many large companies are currently heavily lobbying government officials to postpone or even exempt their business from the fee. They claim it is just one of many projected costs associated with the implementation of ObamaCare

While the Federal government just agreed to take over the collection of the fee, instead of leaving it to the states, it is not clear how it will be collected. While submission of the fee will probably not be a payroll function, HR departments will inevitably be involved as HR administrators  have the best handle on employee counts and status.

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-B W – Westmoreland, DDS, Johnson City, TN

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-J K – American Calendar, Greeneville, TN

7-28-2014

Time & Pay Hires New Account Executive for Knoxville

Time & Pay is pleased to announce the hiring of Larry Elliott as an Account Executive to represent our services in the Knoxville, TN and surrounding area. “Larry brings a strong background in sales and customer service to our company,”  noted Steve Scheu, CEO,  ”as well as years of business experience and a good understanding [...]

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7-15-2014

FMLA Benefits Now Include Same Sex Marriage Couples

Under a proposed rule issued June 20th by the Dept. of Labor, the Family and Medical Leave Act (FMLA) will now apply to eligible employees in legal same-sex marriages regardless of what state they live in and that state’s same-sex marriage laws. Under the FMLA, workers are allowed to take up to 12 weeks of [...]

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6-30-2014

Minimum Wage to Increase in Some States

Mid 2014 brings minimum wage increases to a number of locations. The hourly minimum wage rate is to increase July 1 in two states and the District of Columbia, with rate changes coming over the next few months in other states. Wage rate increases that take effect July 1: • California: The state’s hourly minimum wage [...]

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