The Affordable Care Act (ACA), also sometimes known as Obamacare, was enacted in March of 2010. It was designed to extend affordable health coverage to uninsured Americans. Not only did it create a Health Insurance Marketplace, but it also required that plans list essential health benefits, expanded Medicaid eligibility, and kept insurance companies from denying coverage due to the presence of pre-existing conditions.

If you own and operate a company with more than 50 full-time employees, you should be paying attention to ACA compliance and how it applies to you. This article will provide a general overview of what you can do to maintain compliance and avoid costly penalties.

How does the ACA impact businesses?

Under the ACA, companies of 50 full-time employees or more are legally required to offer affordable health insurance options to their employees. Additionally, employers must provide adequate notice to their employees so they are aware of their health insurance options. This must include coverage through the Marketplace, as well as a description of how they can get more information or assistance by visiting the online Marketplace. Click here for more information about how to comply with the affordable care act.

How to comply with the Affordable Care Act

If you’re wondering how to comply with the Affordable Care Act, there are several steps you can take to ensure that your business is in line with federal regulations. Compliance requirements may vary from state to state, but generally, here are the most basic steps your company needs to take to comply with the ACA:

• Investigate grandfathered plans: If a health plan considers itself a “grandfathered plan,” it’s not required to comply with certain ACA rules. Evaluate the status of these plans to determine changes in benefits or costs to employees and provide a notice of these changes.
• Review the requirements for particular plans: Group health plans and non grandfathered group health plans have certain requirements like policy usage limitations, a required orientation period, and annual out-of-pocket cost limits. Make sure you review the plan documents for any required changes to benefits.
• Provide written notices to new employees:  Make sure you give new employees and their dependents a written notice about the Health Insurance Marketplace within two weeks of their initial start date. You’ll also need to provide a summary of benefits and coverage, and notify employees of any modifications or plan changes.
• Comply with all information reporting requirements: Depending on your company’s status, you may need to report information on minimum essential health coverage to the IRS and covered individuals.

Of course, compliance with the ACA is a complex process, so this is by no means an exhaustive list. If you still want to know how to comply with the Affordable Care Act and receive individualized guidance for your business, it's best to work with a knowledgeable attorney who is familiar with the ACA.

Read a similar blog about employee management here at this page.