Information About the Affordable Care Act Delays

The Obama Administration has delayed for one year the requirement for employers to provide health insurance to their employees and related reporting requirements.

BUT, The following are still required for this year:

Providing Notice to Employees Deadline – October 1, 2013

Employers must provide a notice of coverage options to each employee, regardless of plan enrollment status (if applicable) or of part-time or full-time status.

Form and Content of the Notice to Employees

The notice to inform employees of coverage options must:

  • Include information regarding the existence of a new Marketplace
  • Include contact information and description of the services provided by a Marketplace
  • Inform employee that they may be eligible for a premium tax credit under section 36B of the Code if the employee purchases a qualified health plan through the Marketplace
  • Include a statement informing the employee that if the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes

Your insurance provider should provide you with this information. Please contact us if they do not or if you need any assistance.

Federal Exchange

The State of Michigan will be part of the Federal Exchange. Updates will come as the exchange is developed. As of today, 14 health insurance providers have submitted applications to be part of the Federal Exchange.

Small Employer Health Insurance Tax Credit

Qualified Small Employers (generally those with less than 25 Full Time Equivalent Employees) who purchased health insurance coverage for their employees have been allowed a tax credit of up to 35% of the amount the employer contributes to the cost of employees' health care coverage. For tax years beginning after December 31, 2013, the tax credit will increase to up to 50% for two years and will be available to small employers who purchase health insurance for their employees through a SHOP (Small Business Health Options Program). SHOP will be designed to reduce the burden and cost to small employers.

If you received a health care tax credit in the past or to be eligible for a credit in 2014, you must go through a SHOP to qualify for a tax credit. Please contact your Lewis & Knopf team member at 810-238-4617 or toll-free at 877-244-1787 to discuss your situation and the best way to proceed.