Wallingford Business Insurance: ACA Allows Bare-bones Healthcare

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Wallingford Business Insurance: ACA Allows Bare-bones Healthcare
Wallingford Business Insurance ACA Allow Bare-bones Healthcare

Controversy over the Affordable Care Act (ACA) has yet to fade out even four years after the legislation passed. Business and officials are stuck in a seemingly endless battle of wits. Corporate leaders are looking to ease the transition into providing many hourly-wage, short-term and variable-hour workers with affordable healthcare options under the new regulations. Meanwhile, legislators are strongly driving progress and holding more businesses accountable for upholding the ACA standards.

ACA regulations require all operations with over 50 employees to offer an “eligible employer-sponsored plan” that meets the minimum coverage stipulations. Any health insurance plan that is legally sold within a state’s boundaries qualifies as an “eligible employer-sponsored plan.” In many states, insurers market inexpensive plans that cover a limited range of services. Under current policy in many states, employers can offer these inexpensive plans to their workers and thereby avoid punitive penalties. Many organizations are seeking strategies that minimize the impending financial impact of increasing employee benefits.

One of the most prominent options many businesses choose to offer remains “skinny” healthcare coverage options. These healthcare policy options, called fixed-indemnity coverage, typically offer group health benefits that only provide coverage of specific types of medical care, excluding events such as hospitalization and severe illness management. However, such plans generally fail to satisfy the 60 percent minimum value threshold established by ACA legislation mandating that plan participants pay no more than 40 percent of covered medical expenses and spend no more than 9.5 percent of their annual wage for healthcare coverage. Employees or government funded support systems end up absorbing the financial burden involved with providing adequate healthcare coverage options.  Some industries faced with the challenges of a large workforce are opting to absorb the penalties for not providing the “minimum essential coverage” rather than the harsher ramifications for businesses with “no offer.”

The best solution for your business can often be hard to find, especially for operations looking to balance the well-being of their workers with the limitations of their budget.  At Sinclair Risk and Financial Management we offer a wide array of risk management and financial planning services. We specialize in developing comprehensive Wallingford Employee Benefits packages complete with cost effective healthcare solutions. Our extensive Commercial Insurance portfolio allows us to address all your Wallingford Business Insurance needs with ample solutions. For more information about all our services, give us a call today at (877) 602-2305.