Five myths about the Affordable Care Act and midsize businesses

Many businesses are struggling to understand and comply with the rules of the Affordable Care Act (ACA or health care reform law). But we have many helpful resources on our makinghealthcarereformwork.com website that you can share with your clients, like this blog. The blog dispels many misconceptions employers may have about the ACA. We'll also share this information with employers in our employer newsletter. But here are five common myths* some of your midsize group clients (51 to 100 employees) may need your help with to understand:

• Myth #1: Our business is exempt from the Affordable Care Act’s employer mandate
  Companies with more than 100 full-time employees must provide health insurance to full-time workers starting this year. In 2016, your employer clients with 51 to 100 full-time workers also will have to provide coverage.
   
• Myth #2: Most businesses of our size don’t provide health insurance today
  The ACA requires your midsize employer groups to change their existing coverage. But only a small percentage will be offering coverage for the first time. Read the blog for some statistics that prove this.
   
• Myth #3: Even if we are penalized for not providing coverage, we can deduct the penalty on our income taxes
  Companies that fail to comply with the employer mandate are subject to a penalty. But the mandate is set up as a shared responsibility fee. This makes the penalty a tax that cannot be deducted for federal income tax purposes.
   
• Myth #4: We can continue to offer a limited benefit or mini-med plan
  Limited benefit plans do not meet ACA rules, so any midsize group clients currently offering these types of plans will need to upgrade their coverage to meet the employer mandate.
   
• Myth #5: We will have to buy our insurance from a government website
  The Small Business Health Options Program (SHOP) is the online health insurance marketplace, or exchange, for businesses. But let your clients know that using the exchange is optional. Employers can come to you at no extra cost and buy directly from an insurance company.

Check out the blog for more details about these common myths and more.

*Excerpted from an article on our blog