While offering health insurance to all full-time employees can be incredibly costly, one solution to help ease this financial burden is to offer minimum essential coverage, which is also referred to as a "skinny plan."
While minimum essential coverage offers employees useful health benefits such as preventative care and wellness tests, it's not really what most Americans would consider to be health insurance. Instead, minimum essential coverage is more of a bare bones plan that we've historically seen offered by lower-wage industries such as hotels and restaurants.
By offering a minimum essential coverage plan to your workforce, you can avoid paying a $2,160 penalty (as of 2016) per full-time employee.
However, it should be noted that even if you offer your employees minimum essential coverage, you still run the risk of having to pay a penalty under the ACA. This could happen if one of your full-time employees chooses to receive the premium tax credit to purchase health insurance coverage through the marketplace.
Here are some of the reasons why an employee would choose to purchase health insurance coverage through the marketplace over an employer's minimum essential coverage plan:
- The minimum essential coverage offered by the employer was not affordable.
- The minimum essential coverage offered by the employer offered little value.
- The employee was not offered any type of minimum essential coverage plan.
If just one full-time employee chooses to receive the premium tax credit to shop the Marketplace for coverage due to the reasons listed above, an employer could be subject to paying an another penalty.
Fortunately, at Summerlin-Roberts, we are able to provide you with a health insurance plan that will satisfy the minimum essential coverage penalty and any additional penalties that could be incurred if an employee was to purchase an individual health insurance policy through the marketplace.
Please contact us at Summerlin-Roberts to learn more about how our program can help your business to avoid paying these costly penalties while also allowing you to offer a health insurance plan to your employees that will satisfy their needs.