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| Chautauqua County Chamber of Commerce |
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Chamber Corner for April 4  |
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HEALTH INSURANCE REFORM AND YOUR BUSINESS
By Todd Tranum, President/CEO, Chautauqua County Chamber of Commerce
As the dust settles on what has been a long and interesting legislative process pertaining to Health Care Reform in our Nations Capitol, we felt it important to give a basic summary of the implications it will have on businesses here in Chautauqua County. The Chamber of Commerce and Manufacturers Association have been pro-active in our efforts to improve the insurance benefits we offer our members and secondly position ourselves to address legislative changes. We have monitored this issue closely. The changes the Chamber made to its health insurance program this past year were very timely and positions us well for the changes we will see from the health care reform package. Here is a brief summary of what the reform bill means to you:
Tax Credit
If you are a business with fewer than 25 employees, you qualify immediately for a tax credit on the health insurance premium you pay for your employees. This year the credit is up to 35% of the premium; in 2014 the credit rises to 50%. This credit is determined based on average earnings of the employee.
Mandates
- Individuals will be required to carry health insurance regardless of whether it is offered by their employer, they receive it through a government program or they purchase it directly through an exchange.
- If you are an employer with fewer than 50 employees, you face no mandate to provide health insurance.
- Starting in 2014, if you have over 50 employees, the Act adopts what is called a “play or pay” mandate for employers. Employers can choose to (a) provide health care insurance (with such insurance meeting minimum standards regarding benefit levels and employer subsidies requirements), (b) pay a fine of $2,000/employee/year, or (c) in some cases, allow employees to take the employer subsidy and apply it to the purchase of health insurance through an exchange. Employers also face the fines if any of their employees seek to purchase health care at a health insurance exchange because their employer-sponsored coverage was not “affordable” (i.e., the employee premium exceeds 9.5% of the employee’s income).
Insurance Exchanges
By 2014, states will be required to set up Small Business Health Options Program (SHOP), where small businesses will be able to join together to buy insurance. (“Small businesses” are defined as those with less than 100 employees). This could end up being similar to what the Chamber of Commerce currently provides the business community. This past year, as the Chamber implemented a new health insurance program we integrated an exchange model with Liazon Benefits as a means of distributing the new programs to the consumer. The presence of this exchange, positions us well for the changes that will occur in 2014.
Other Provisions
The Act contains new consumer protections. It exempts preventive care and adopts significant new federal oversight of heath care insurers. It includes requirements regarding guaranteed issue, restrictions on the ability to vary insurance premiums (other than limited variations due to age and tobacco use), prohibitions on lifetime maximums, and restrictions on the ability to rescind coverage. Most of these protections become effective in 2013, but certain restrictions are effective as soon as this year.
It is safe to anticipate that the Act will change the way employers and employees view the role of health care as a part of total compensation and as an element in the employment relationship. In many respects, we have anticipated these changes and have already put our members on the new path with preventive care, benefits allocations, and a comprehensive Benefits Exchange™ through our partnership with Liazon. We will continue to work with you to stay “ahead of the curve.”
HEALTH INSURANCE REFORM AND YOUR BUSINESS
BUSINESS OVER BAGELS EVENT - APRIL 9th
The Chamber will hold a Business over Bagels event focused on health insurance reform and what it means for your business. The program will include an overview of how the Chamber of Commerce and Manufacturers Association are driving efforts to contain health insurance costs. The Chamber’s new health insurance product offerings will be highlighted and a demonstration of Univera’s Active Rewards program will be presented to show how it can help employers reduce their health insurance costs. On April 9th the Business over Bagels program will take place at the Justice Jackson Center located at 305 East Fourth Street, Jamestown. The program begins at 8am. The cost is $5. To register go to www.chautauquachamber.org or call 484-1101 or 366-6200. This event is sponsored by Advertising Advantage and Univera.
CHAMBER OF COMMERCE EVENTS CALENDAR
Earth Day: An Experience Chautauqua County Networking Event – April 22nd
Event begins at 5pm at the Audubon Society, Jamestown
This event is sponsored by Advertising Advantage, BWB/Vineyard Group, Community Bank, DFT/Netsync, the Observer, the Post Journal and Media One Group, WJTN/WWSE/WKSN/WHUG/WQFX.
OSHA Roundtable: Regulatory Update – April 23rd
Roundtable begins at 12pm at the Manufacturing Technology Institute, Jamestown
Sponsored by Univera Healthcare.
To register go to www.chautauquachamber.org or call the Chamber at 484-1101 or 366-6200.
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