The Skinny on “Skinny Plans”

There has been a recent increase in popularity of so-called “skinny plans” by several insurance providers. These plans aim for the bare minimum, meeting value requirements for health insurance coverage but lacking in-patient hospitalization coverage. The IRS and HHS say this is NOT okay, and are planning to issue proposed regulations saying such plans MUST include coverage for in-patient hospitalization services in order to meet minimum value requirements. Under the same notice, it will be stated that employers who promote these “skinny plans” cannot use the online minimum value calculator, as it will not offer an accurate determination of minimum value under these plans. These regulations are set to be finalized in 2015 and will likely apply to plan years beginning on or after November 4, 2014, but will likely not apply to those who have already finalized plans prior to that date.

Contact Eide Bailly’s Employee Benefits team for additional information.

Video: Do You Have a Grandfathered Health Insurance Plan?

As of January 1, 2014, the Patient Protection and Affordable Care Act will require all individuals in the U.S. to have some form of health insurance. While this will impact ALL businesses, employers with 50 or more full-time equivalent employees will be required to either provide affordable health insurance coverage for all employees, pay defined penalties and send employees to a Health Insurance Exchange to purchase insurance, or develop a new hybrid health insurance plan.

Eide Bailly is taking a lead on helping its clients comply with this Act. Ross Manson, health care consultant, answers the question, “Do you have a grandfathered health insurance plan?” in this video. We encourage you to learn more at http://www.eidebailly.com/healthcarereform , as all businesses must comply by January 1, 2014.

Businesses have more choices now than ever before, but determining the best plan can be confusing and complicated. Eide Bailly has developed a proprietary calculator to help you quickly and efficiently analyze your specific situation, so you can select and implement a plan that works well for your company and your employees. For more information, click here: http://www.eidebailly.com/services/health-care-reform

Health Care Reform Basics

As of January 1, 2014, the Patient Protection and Affordable Care Act will require all individuals in the United States to have some form of health insurance. Integral to this reform, is the creation of state, regional and federal health care Exchanges, where individuals can purchase a variety of affordable health insurance plans and, if they fall within certain income levels, receive government-subsidized premiums.

This Act affects all businesses; however, large employers with 50 or more full-time equivalent employees will be required to:

A. Provide affordable health insurance coverage for all full-time employees,
B. Elect not to provide health insurance coverage, pay defined penalties, and send employees to a state, regional or federal Exchange to purchase insurance, or
C. Develop a new hybrid plan.

Employers who elect not to provide health insurance coverage will be assessed a penalty of $2,000 annually per full-time employees, minus the first 30 full-time employees if at least one employee receives an Exchange subsidy. Additionally, if an employer’s coverage is deemed unaffordable, the employer will be fined $3,000 for that employee.