ACA Update in Brief- What you need to know

Several key dates have been moved in the timeline for Affordable Care Act (ACA) implementation. This legislation, known commonly as Obama Care, included a mandate for businesses with more that 50 full-time employees to provide qualified healthcare insurance plans for their employees as well a provision for those applying for subsidy assistance to have their income validated for tax purposes.

These key items have been moved back as follows:

1. Large employer mandate to provide coverage moved to January 1, 2015
2. Individual income verification, in state managed Exchanges delayed to January 1, 2015 (Note: The system will audit a sample of some applications for accuracy.)
3. Individual income verification, in Federally managed Exchanges continues January 1, 2014

Illinois has opted for a partnership exchange with the Federal government. 

In Brief:

• Individuals caught falsifying their income or insurance status on the exchange applications may face up to a $25,000 fine and be forced to repay any subsidies through future tax returns.
• Employee Benefit Research Institute reports that 90% of employers with 51 or more employees are already offering health benefits to employees.
• Employees who are offered insurance through their employer that is 9.5 percent or more of their income may qualify for tax credit subsidy under the Affordable Care Act and purchase a policy within the exchange or privately off the exchange.
• Employees who do not have an employer sponsored plan may be eligible to receive a subsidy to purchase coverage through the Exchange.
• Workers earning less than 133 percent of the poverty line or approximately $15,000 annually, will qualify for Medicaid coverage in Washington D.C. and 23 states that have decided to expand the program.

Implications for Big Business and Employees:

There is little to no impact for companies employing more than 50 workers. This may also provide an outlet for employees who have experienced an increase in the cost of the employer sponsored plans. These employees who have coverage through an employer that is more than 9.5% of their annual income may qualify for a subsidy through the exchange.

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