The “Save American Workers Act, (HR 3798) will be voted on very soon by the House of Representatives. If passed, it would change the definition of a full time worker to a full 40 hours a week, not 30 hours as it stands now with the ACA, ObamaCare. Today, an employer with at least 50 “full time” workers (30+ hours) are required to offer them affordable health coverage approved by the ACA.
ACA Employer Mandate holding back some employers from growing and expanding
I personally know several companies that purposely keep their employee count under the 50 FTE, or Full Time Equivalent for the very reason of NOT having to meet the ACA Employer Mandate, instituted as part of ObamaCare back in 2010. These employers are fearful that IF all of their employees take them up on their offer of insurance, it would put the company out of business, trying to keep compliant. What happens with all of our employers forced to comply with the Employer Mandate is that only a few employees enroll into the insurance, for several reasons
Multiple reasons why employees don’t enroll into health insurance with companies under the gun with the ACA
What we see time and time again, is that when you have employees making minimum wage or just above minimum wage, they still feel that the coverage is not affordable to them. Even though the employer is compliant with the ACA calculations set up by ObamaCare, the employee feels the insurance is too expensive. Under current law, the employee cannot spend more than about 9.5% of their gross wages towards the single employee coverage offered by the employer. The company has to pay for anything above that 9.5%. Employees are looking at spending $200-$300 a month for their coverage. Many of them don’t want ANY money out of their check, so they waive off the coverage
What looked like a big scary law that was going to put larger employers out of business, ended up being a big nothing. They have to pay for a few employees that DO want to enroll, and the rest of them decline to enroll.
Currently the law is set up to where IF an employee of a company of 50 or more employees obtains a subsidy from the Health Exchange, the IRS looks to the employer to make sure they are compliant with the Employer Mandate Law. If they are not, big fines are being levied against ALEs, Applicable Large Employers.
Brauer Insurance was started by Steve Brauer and his daughter Bonnie Brauer Shelton to provide guidance to companies struggling with these issues. Brauer Insurance Services LLC, www.brauerinsurance.com (877) 421-4325