Call Us 718-534-1194 ☰ ˟
Logo
Call Us 718-534-1194
  • HOME
  • OUR PRODUCTS
    • Business & Commercial
    • Employee Benefits
    • Life Insurance
    • Professional Liability
    • Workers Compensation
  • GET A QUOTE
    • Business & Commercial
    • Employee Benefits
    • Life Insurance
    • Professional Liability
    • Workers Compensation
  • BLOG
  • RESOURCES
    • Refer a Friend
    • Insurance Glossary
    • FAQ
  • ABOUT US
    • About Us
    • Employee Directory
    • Customer Testimonials
  • CONTACT
    • Contact Us
    • Join Our Newsletter
Auto and Home Icon

Employee Benefits

GIVE YOUR TEAM NEW LIFE:
Attract and retain top talent with enticing group benefits packages.

Learn More
Business Icon

Professional Liability

MAKE YOUR BUSINESS OUR BUSINESS:
Give us the full time job of protecting your business.

Learn More
Life and Health Icon

Workers’ Compensation

LEAD WITHOUT LOSS:
Protect your team - and your money - from harm on the job.

Learn More
RV and Boat Icon

Life Insurance

GIVE LIFE - GET LIFE:
Insure yourself, your family, and your employees for life.

Learn More
Annuities Icon

Business Coverage

STAY TACTFULLY INTACT:
Effortlessly guard your property and practice against all loss.

Learn More
Home > Blog > Does It Pay to Play? ALEs and the ACA
TUESDAY, OCTOBER 2, 2018

Does It Pay to Play? ALEs and the ACA

Pay to Play Obamacare and Large Employers - ALEs and ACA - Zupnick Associates Employee Benefits Blog - National Cancer Institute - Unsplash

(by Slava Darozhkin)

Ever since the ACA was signed into effect, big businesses around the nation have been scrambling to escape penalties accrued unknowingly, and to ensure their business isn’t run into the ground because of healthcare disputes.

What Are The Rules?

The only way to stay ahead of the curve and know when you’re supposed to file what, and as what, is to arm yourself with knowledge. 

Which businesses have to comply with the ACA? What parts of the ACA must business comply with? How will the ACA affect my business? Before jumping into these, and other questions, let’s first examine which businesses are even obligated to be worried about the ACA.

What Is an Applicable Large Employer (ALE)?

A key feature of the Affordable Care Act (also known as Obamacare) is the way in which responsibility for affordable health care coverage is shared between stakeholders. Companies that employ 50 or more people may be considered "Applicable Large Employers", or ALEs, under the Affordable Care Act (ACA). 

According to the ACA, an employer with 50 or more full-time employees is considered an applicable large employer, and therefore must provide health insurance to their employees that meet the standard, which is determined by the act.

An employee is considered full-time when they work a 30-hour week. Part-time employees’ hours are combined to equal single, full-time employees, and thus the company’s status is determined. Seasonal employees can also be considered part-time if there are more than 50 of them working for the same company at a time, and they work at least 120 days of the calendar year.

Play or Pay

The obligations for the employer are simple: provide adequate health insurance to more than 95% of your full-time employees or pay a penalty.

“Adequate” health insurance is defined by predetermined standards in the Obamacare legislation, achieved through a convoluted cycle of information gathering, to the tune of 9.5% of the employee’s household’s income. Essentially, at least 60% of the total cost of benefits for health care services covered under the plan.

To aid you in figuring out your precise costs, the IRS has been kind enough to provide us with a calculator in the form of a spreadsheet.

Does It?

Now that you have a clear understanding of what it means to “play” and care for your 50+ full-time employees properly, or “pay” and pay the fees racked up for each employee the company didn’t help, we must circle back and answer the question; does it pay to play?

Ultimately we believe that yes, it does indeed, pay to play. Records prove companies save more money on the cheaper health insurance deals through ACA than paying for the penalties accrued over time.


Posted 4:49 PM

Tags: aca / obamacare, employee benefits
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018

  • employee benefits(53)
  • covid-19(22)
  • coronavirus(18)
  • hr(16)
  • medicare(11)
  • open enrollment(8)
  • business insurance(7)
  • insurance(7)
  • health benefits(6)
  • health insurance(6)
  • recruitment(6)
  • aca / obamacare(5)
  • small business(5)
  • hiring(4)
  • covid(4)
  • employee retention(4)
  • medical malpractice(4)
  • liability insurance(4)
  • medmal(4)
  • insurance broker(3)
  • healthcare acronyms(3)
  • life insurance(3)
  • general liability(3)
  • benefits(3)
  • property insurance(3)
  • employee wellness(3)
  • reference-based pricing(3)
  • sexual harassment(3)
  • leadership(3)
  • faq(3)
  • nys(2)
  • interview(2)
  • unemployment(2)
  • attrition(2)
  • nyc(2)
  • hsa(2)
  • public school(2)
  • healthcare(2)
  • shrm(2)
  • taxation(2)
  • parental leave(2)
  • private school(2)
  • medical tourism(2)
  • benefits advisors(2)
  • marijuana(2)
  • pcori(2)
  • manager(2)
  • medical negligence(2)
  • company policies(2)
  • talent retention(2)

View Mobile Version

Contact Us Today!
718-534-1194

Social Social Social Social Social

Resources

  • About Us
  • Refer A Friend
  • Blog
  • Contact Us

Contact Us

1425 37th St #515
Brooklyn, NY 11218

Ph: 718-534-1194
© Copyright. All rights reserved. | Powered by Insurance Website Builder