Owen Services

Please read this update carefully due to many changes coming your way prior to 2014.

Upcoming reform laws set in motion a radical restructuring of employer sponsored health benefits. As employers become more aware of new economic and social incentives embedded in the law, many will make dramatic changes. Employers must quickly examine the implications of healthcare reform on their benefit and workforce strategies.

These strategies will involve totally new ideas for dealing with lower and higher paid employees, tax advantages, fines and penalties, so-called Cadillac taxes, employer reporting, co-existing with State Exchanges, benefit vouchers, W-2 reporting, employee education, and much more. Employers may need to reconsider what benefits they offer to employees. Employees will inevitably become more involved with their insurance choices, thus the need for better education. The Employer's role will change from insurance plan sponsor to facilitator of employees' choices.

Reform requires all employers with more than 50 employeess to offer health benefits to every full-timer or pay a penalty of $2000 per worker (less the first 30). The benefits must provide a reasonable level of health coverage. Subsidies are awarded to lower income employees. Low income employees are ones that are at 400 percent of the federal poverty level or $89,000 for a family of four. These subsidies will be awarded to keep premiums below the required 9.5 percent of household income.

As employers consider their post-2014 options, consider how your competition will react to attract and keep talented employees. Also consider if you have the best fighter in the ring. You want a true expert in your corner, keeping you informed as an employer and accurately and effectively educating your employees of their options and legal rights. A quality broker involved in health reform mines information from their legislative activity and other employers. There is no reason for an employer to reinvent the wheel when you have a quality broker representing you.

If you would like to schedule an appointment to discuss the details, please call Tim Owen personally at 904.287.0848 ext 11