In 2014, Julia’s employer will offer healthcare coverage, disqualifying her from more than $8,000 in federal support and costing both her and her employer more. How can you avoid making the same mistake?
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JULIA'S SITUATION
Julia earns $39,000 per year as a department store manager. A mother of two, Julia wants good benefits without too much cost. As of 2014, Julia’s family qualifies for $8,000 in federal support for health insurance. But if her company offers employer-sponsored health coverage, she’ll be disqualified from the $8,000 federal tax credit, and she and her employer will both pay more. Luckily, Benefitter’s team of experts can help her employer avoid this lose/lose situation.
The optimal healthcare plan for Julia’s family costs $10,000—$5,000 for Julia’s premium and $2,500 for each of her two children. In 2014, Julia’s employer intends to pay 80% of Julia’s premium and 50% of her children’s premiums in a well-intentioned attempt to comply with the Affordable Care Act. In this scenario, Julia will pay $3,500 and her employer will pay the remaining $6,500.
However, if her employer did not offer health coverage, Julia could enroll in the public exchange and qualify for an $8,000+ premium tax credit. This means Julia would pay less than $2,000 for her health insurance and her employer would only pay $2,000 to the federal government as part of their “shared responsibility payment”—resulting in significant savings for both Julia and her employer, for the same level of coverage.
For employers with midlevel-income employees, current healthcare reform has created counterintuitive opportunities. Benefitter can assess if these opportunities apply to you and can support you and your employees in making a smooth and affordable transition.
THE CHALLENGE
Is Your Company Ready for 2014’s Health Care Reform?
American employers are scrambling to understand all the requirements of the Affordable Care Act in time for benefits enrollment season this fall. At first glance, this reform might look to you like more expenses, more taxes, and more bureaucracy. But Benefitter can help you identify your full range of options and make a smart plan that saves you money while improving employee benefits.
KNOW YOUR OPTIONS
The question of the hour is this: Are you and your employees better off with employer-sponsored health coverage, or would you all save money if employees buy their insurance on the consumer health insurance market with federal support?
Benefitter’s Healthcare Reform Calculator can give you an immediate answer to this crucial question, and for over a third of American employers, the answer will ensure that you and your employees have the most affordable coverage possible.
EXECUTE YOUR PLAN
Launch your new healthcare strategy with confidence. Once Benefitter helps you communicate your win/win approach to employees, we’ll guide them in selecting their benefits and manage all the related administrative requirements. Finally, you can leave the insurance bureaucracy to us, so you can focus on running your business.
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