ACA Shared Responsibility Provision

ACA Shared Responsibility Provision

If your firm sent an offer letter indicating a separate stipend to cover the cost of purchasing insurance, according to the Affordable Care Act (“ACA”) you could face a $100 a day fine per employee. Even if you don’t have over 50 full time employees, the government might still consider you an Applicable Large Employer (“ALE”) depending on how employees work their shifts and a review of full-time status and part-time hours.

  • Your firm could be subject to the Shared Responsibility provision of the ACA (Employer Mandate/Penalties)
  • Your firm will need to complete 1094 and 1095 reporting for 2015 (due in March 2016)

If your firm is an ALE, the following options are available for 2016:

  • Provide “Minimum Value” and “Affordable” (as defined by the ACA) medical insurance for FTEs
  • Provide Minimum Essential Coverage for FTEs, accepting risk for a penalty for each full-time employee who goes through the Exchange and receives a subsidy
  • Pay the “A” penalty ($2,000 annually) for each full-time employee, minus the first 30 employees

To determine if your firm is subject to the Shared Responsibility Provision of the ACA, and to decide which option is best for your firm, speak with your benefits consultant or in-house benefits professional. The ACA is confusing, and fines can add up quickly.

To schedule a meeting with your KMRD Partners Relationship Manager to review and update your insurance and risk management strategy, call us at 866-957-KMRD (5673) or send an email via the contact form available

KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®

We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.

To identify and correct coverage and service gaps in your business insurance risk profiles contact us at before one minute from normal strikes.

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