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(Graphic: Business Wire)
Under the PPACA’s “employer mandate,” employers that fail to offer health coverage to their employees are subject to financial penalties. The
“The challenge is that limited awareness exists on the magnitude of potential penalties,” said Scott Brown, managing director of payer consulting,
Under the PPACA’s mandate, employers with more than 50 full-time employees must provide health insurance benefits to avoid two potential penalties. For the 2016 benefit year, to avoid incurring the “part A” penalty, employers must offer minimum essential coverage (MEC) to 95 percent of employees and dependents under 26 years-old. Employers that meet the MEC threshold could still face the “part B” penalty if they fail to meet either the minimum value or affordability requirements included in the law.
“It’s critical that employers understand the details and reporting requirements of the law to avoid unexpected penalties,” Brown said. “Not only do employers need to offer compliant health coverage, they need to meet the reporting requirements to demonstrate compliance.”