Subsidy Calculator

The Kaiser Foundation has come out with this subsidy Calculator that shows an estimate of what Premium Assistance for coverage in the Exchanges or Marketplaces. http://kff.org/interactive/subsidy-calculator This tool illustrates health insurance premiums and subsidies for people purchasing insurance on their own in new health insurance exchanges (or Marketplaces) creasted by the Affordable Care Act (ACA). Beginning October 2013, middle-income people under age 65, who are not eligible for coverage through their employer, Medicaid, or Medicare, can apply for tax credit subsidies available throught state based exchanges. IMPORTANT - Those who are NOT eligible for coverage through their employer! Additionally, states have the option to expand their Medicaid programs to cover all people makeing up to 138% of the federal poverty level (which is about $33,000 for a family of four). In state that opt out of expanding Medicaid, some people making below this amount will still be eligible for Medicaid, some will be eligible for subsidized coveage through Maretplaces, and others will not be eligible for subsidies.

Want productive employees? Keep them happy

n a memo to staff dated Aug. 30, Trader Joe’s CEO Dan Bane announced that the company would cut insurance benefits for those who log fewer than 30 hours a week. Bane said the company will cut part-timers a check for $500 in January and assist them in finding a new insurance plan under the Patient Protection and Affordable Care Act. In a statement to Huffington Post recently, a spokeswoman for the company said the changes “will be a benefit to all Crew Members working in our stores.” I’m not so sure the “Crew Members” feel the same way. It doesn’t take a Wharton grad who also doubles as a health insurance expert to figure out that this is — solely — a benefit for the corporation. Trader Joe’s, along with other companies, are using the Affordable Care Act as a scapegoat – an excuse to abolish benefits. True, it may not be cost-effective for the company to continue offering health care benefits, but it keeps employees happy. And luckily, there are actually a few individuals out there who realize that happy employees are critical to success. A few days ago, Robert Crisan, senior vice president for health care reform and strategic growth at Hylant, told me: “I recently worked with a 283-employee company that determined it would pay $506,000 in yearly penalties if it decided to drop health care benefits. Those fees would be a relative bargain compared to the firm’s current annual net cost of $1.8 million for employee health care. However, the company will likely stick with its current benefit offerings to keep its employees happy. If you’re the employer next door and you offer benefits, you’re going to get your pick of those employees.” Unhappy workers are unproductive workers, and, over time, unproductive workers cost even more money than what a company such as Trader (also known as Traitor) Joe’s may have forked over for health insurance for all workers. Want productive employees? Keep them happy.

Good news for Small Employers who use SHOP

If you’re a small employer with fewer than 25 full-time equivalent employees, there is good news. Did you know you may qualify for a tax credit worth up to 50% of your premium costs when you buy health insurance through the Small Business Health Options Program (SHOP)? Non-profit employers may qualify for a tax credit worth as much as 35% of premium costs. Here’s how the tax credit works. If you had 10 employees making $25,000 each and your contribution to employee premiums was $70,000, your tax credit amount would be $35,000— 50% of your contribution. For non-profit employers, the tax credit amount would be $24,500—35% of your contribution. This means you get health insurance for your workers, and keep more of your cash in your business. Call me for more information on how to figure if your employoees are considered full or part time. The rules have changed.