Health Insurance

OPTION 1: OFFER EVERY EMPLOYEE HEALTH INSURANCE.

The owners estimate that providing health insurance would cost $200 per employee per month. The company’s annual cost of the insurance for 95 employees is $108.000 plus administrative cost, which is $10.000, which is about $100 per employee per month and the employees would pay $100 as well.

Employers with 50 or more full-time employees are required to offer health care coverage to their employees under the Affordable Care Act (ACA). However, employers are not required to cover 100% of the cost of the benefits (i.e. they are not require to provide free coverage to their employees). The rule is that the insurance benefit must be deemed “affordable” under the ACA, which means that the employer cannot charge the employee more than 9.5% of his/her income for insurance.

The coverage must be “affordable” and provide “minimum value.”

OPTION 2: DO NOT PROVIDE HEALTH INSURANCE TO EMPLOYEES AND PAYTHE PENALTY.

The Affordable Care Act gives the option to companies to choose not to provide health care coverage must pay a penalty of $2.000 for each worker, excluding the first 30 workers. The cost of this option is more expensive, the company has to pay $130.000 and also workers are always looking for companies with good benefits.

OPTION 3: OUTSOURCE CERTAIN JOBS.

By outsourcing work the company can reduce the number of employees under 50, which exempt it from the requirements of the Affordable Care Act. The ACA seems to be not really clear if by outsourcing work the staffing company has to pay the insurance for the employees or if the client is who has to pay for it.

5.2 I recommended offering every employee health insurance. In the long run the company would be benefit by good reputation in