Small Group – Fewer Than 50 Employees
Under the provisions of the Health Care Law that have gone into effect within the past few years, employers large and small are noticing the changes. Although large group employers are likely to feel the harshest effects and penalties resulting from the Health Care Law, small group employers should still be aware of important information and changes.
What are the Health Care Law rules for small group employers?
- A small group employer is defined as a business with between 2 and 50 full-time equivalent employees.
- There is no law requiring small group employers to provide health insurance to their employees, and no penalties are imposed upon small businesses who do not provide coverage.
- Small group employers are guaranteed group coverage if they do decide to purchase it – regardless of the employee’s health status.
- Small group employers are required to provide pertinent marketplace information from the U.S. Department of Labor to all employees, regardless of whether or not health insurance is offered.
- If small group employers elect to offer health insurance to employees, it must be offered within 90 days of each employee’s employment start date.
By comparison, what are the penalties imposed on large group employers who do not follow the Health Care Law?
- The Mandate Penalty may be imposed upon employers not offering group health coverage. The Mandate Penalty is calculated on all full-time employees save the first 30, and amounts to $2,000.
- The Qualification Penalty may be imposed if employers do not offer a minimum and affordable qualifying plan to employees.
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