The Chamber

President Obama recently signed extensive and complex health reform legislation aimed at expanding access to health care coverage for millions of Americans.

The new law has many provisions that may impact you as an individual and as an employer. Beginning in September 2010, new insurance reforms as well as small business tax credits will begin. Other provisions of the new law will be phased-in from 2011 through 2018 – with most of the key provisions taking effect in 2014.

As a service to our valued members, PBA has created this health care reform section to provide you with an introduction to understanding the new federal law. It is important to note that this information is not intended to be legal guidance.

The association is committed to providing up-to-date information to our members on the issues that matter most. Health care reform will continue to be refined and changed over the next several years. As such, PBA’s government affairs team will continue to monitor any changes and update our members.

For more information please contact PBA’s government affairs team at 800.468.2274 ext. 3451 or Myra Irizarry. 

Health Care Reform Basics

Large employers
Starting in 2014, large employers will be required to provide affordable health insurance coverage for their full-time employees. Large employers are defined under the health-care law as those with 50 or more full-time-equivalent employees. Employers who do not provide affordable coverage to their employees may be liable to pay an annual penalty of up to $2,000 per full-time employee. The penalty is calculated on a monthly basis; federal agencies will need to issue regulations to explain exactly how this will work.

Small employers
Businesses with fewer than 50 full-time-equivalents are exempt from the law’s health care coverage requirements and penalties. Certain small businesses with up to 25 employees may be eligible for federal tax credits starting in 2010 to help offset the cost of providing health benefits.

Full-time employee
A full-time employee is defined as a person who averages at least 30 hours of service per week in any given month.

Part-time employee
A part-time employee is defined as a person who averages fewer than 30 hours a week in any given month. Employers are not required to provide health care coverage or pay penalties for part-time employees. Employers must use part-time employees’ hours solely for purposes of determining whether the business qualifies for the small business threshold.

Seasonal workers
Seasonal workers are defined as those who work 120 or fewer days a year. Seasonal employees’ hours are not counted for purposes of determining whether an employer meets the 50 full-time-equivalent small business threshold. If an employer’s workforce exceeds 50 full-time-equivalent employees (not including seasonal workers) the employer must provide coverage for those seasonal employees who are full-time.

Resources
What Health Care Reform Means For Your business
What Health Care Overhaul Means For You

For more information please contact PBA’s government affairs team at 800.468.2274 ext. 3451 or Myra Irizarry.