To avoid paying penalties in 2015, employers with 100 or more full-time employees or a combination of full-time employees and full-time equivalent employees must offer affordable coverage to at least 70 percent of full-time employees and their dependents (children, but not spouses). In 2016 and beyond, employers with 50 or more full-time employees or a combination of full-time and full-time equivalent employees must offer affordable coverage to at least 95% of their full-time employees and their dependents (children, but not spouses).
Here is what employers need to offer to avoid penalties:
To find out if you may incur a penalty, please see this infographic. All penalties are assessed by the IRS and are assessed as an excise tax.
At this time, large employers are not able to purchase through HealthSource RI, our state's health insurance marketplace (also called an exchange). So you’ll continue to buy plans through a broker or directly from Blue Cross. In 2016, employers with fewer than 100 employees will be considered "small employers" and eligible to purchase through the Small Business Health Options Program (SHOP) through HealthSource RI. For 2017 coverage, states will have the ability to approve large employers (100 or more employees) to buy plans through the SHOP program.
Both fully insured and self-funded large employer groups will be required to provide the IRS as well as individuals with detailed health coverage information for the 2015 calendar year. This information, which will be included in standard forms that are being finalized by the IRS, will enable the IRS to determine if both employers and individuals are complying with the Affordable Care Act.
Here’s what large employers need to know about these requirements:
Form 1095-C: Employer-Provided Health Insurance Offer and Coverage. This information return must be filed with the IRS, and a copy must be provided to the employee by February 1, 2016.