Affordable Care Act laws & HR compliance analysis

Affordable Care Act: What you need to know

The ACA was implemented in stages and encompasses several major areas:
• Measures to encourage more employers to provide coverage, such as the small employer tax credit and health insurance exchanges;
• Insurance reform measures to require insurers and employers to provide better coverage, such as the elimination of lifetime and annual limits and preexisting condition restrictions;
• Measures to reduce costs such as grants for wellness programs and the provision of larger incentives in wellness programs; and
• Measures to greatly reduce the number of uninsured, such as the expansion of Medicaid, the requirement that large employers provide coverage or face financial penalties, the requirement that individuals obtain coverage or face penalties, and mandates on coverage for adult dependent children.
Note: The Supreme Court has ruled the ACA is constitutional, including the individual mandate (National Federation of Independent Business v. Sebelius,132 S. Ct. 2566 (2012)) and the ACA exchange subsidies (King v. Burwell,135 S. Ct. 2580 (2015)).
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The ACA provides a tax credit to certain small employers that provide healthcare coverage to their employees. The Internal Revenue Service (IRS) has issued final regulations and other various guidance regarding the credit (26 CFR 1.45R-1 et seq.).
Eligible small employers. Small employers that provide healthcare coverage to their employees and that meet certain requirements (qualified employers) generally are eligible for a federal income tax credit for health insurance premiums they pay for certain employees. In order to be a qualified employer:
• An employer must have fewer than 25 full-time equivalent employees (FTEs) ...

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