ACA Affordability Test for 2019

Ramping up for the renewal season several things will begin to be updated.  A big one is the ACA Affordability test.  As part of the ACA, the coverage provided by the employer cannot exceed the amount set by the Federal Government. 

New standard and how it works.
     - All plans beginning 1.1.19 will be affected.
     - To be affordable, the employee's contribution cannot exceed 9.86% of their household income.  Most employers apply this to their employee's income only.
     - The percentage is based on the employee only cost for the "base" medical plan.

What does this mean and how will it be calculated?:
     - When deciding the contribution at renewal, the standard is applied to the lowest paid employee at the business.
     - This is a good rule of thumb that makes it easy to calculate.  If an employee makes $10 per hour and works a 40 hours a week, their monthly contribution toward their coverage cannot exceed $170 a month.
     
ACA will continue to rear its ugly head and together we can make the best decision for your business and the employee's benefit coverage options while staying compliant.

For additional information email me at jdavis@wbsinsurance.com.