On June 29, 2012, the U.S. Supreme Court upheld the Patient Protection and Affordable Care Act, President Obama’s healthcare reform law that went into effect in 2010. As a result, the law will remain in effect unless future legislation revokes any of the law’s provisions. Among other things the law requires employers with 50 or more workers to offer a qualified health insurance plan to employees by 2014 or possibly face a penalty. AGC did not support the law because of its inability to decrease the overall costs of healthcare.
Last year, AGC was successful in getting repealed from the Act a mandate that would have required all businesses to issue 1099 tax forms not only to independent contractors, but to any individual or corporation from which they buy more than $600 in goods or services in a tax year. Some other requirements that remain in effect include:
- Changes to W-2 Forms: Effective in 2011, employers are required to include the cost of employer-sponsored health coverage on employees’ Forms W-2.
- Notice to Employees: Effective March 1, 2013, or upon subsequent hire, employers must provide written notice to employees about insurance that is available for purchase through state-regulated exchanges, the employee’s eligibility status for tax credit or cost-sharing reduction, as well as possible loss of employer-provided benefits.
- Summary of Benefits and Coverage: For plan years beginning on or after Sept. 23, 2012, employers must make available to employees an easy-to-understand summary of benefits and coverage along with a uniform glossary of coverage terms.
- Automatic Enrollment: Effective in 2014, employers with more than 200 employees must automatically enroll full-time employees in a health plan, provide employees with adequate notice of enrollment and an opportunity to opt-out.