Since it was passed in 2010, the Affordable Care Act – better known as Obamacare – has been one of the most talked about pieces of legislation in recent memory. As the January 2014 start date looms, many companies are still struggling to comprehend how they’ll adapt to the new requirements and, in many cases, what exactly is going to be asked of them.
A recent article for technology and business blog Entrepreneur by Catherine Clifford examined many of the confusing points of Obamacare, how they will affect businesses in the U.S. and how many companies don’t understand some of the new regulations.
Clifford’s story cites a recent eHealth poll, which stated 56 percent of surveyed businesses misunderstood what would be asked of them with the employee mandate. According to Entrepreneur, if your businesses has 50 or more employees, it must provide health insurance. If it does not, the company must pay an annual penalty of $2,000 for each employee after 30 that are on the payroll.
Additionally, two-thirds of surveyed businesses claimed to have no understanding of how the soon-to-be-implemented health insurance exchanges will work, according to the news source. Meanwhile, only 20 percent claimed to have a “fuzzy” knowledge of the exchanges, and only 18 percent could explain how they could work. Thankfully, Clifford helped to enlighten 82 percent of companies in her story.
“Health-insurance exchanges are marketplaces where businesses and individuals can shop and compare plans,” she wrote. “The federal exchanges, which will become available in October, will make government subsidized health-insurance available for lower-income individuals who are not getting coverage through their employer.”
Having a full grasp of new healthcare legislation will a vital part of any business’ success in the coming months. The best way to ensure that all new requirements are satisfied is to partner with an HR consulting firm to get the right advice when it comes to Obamacare.