Healthcare Reform

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Avoid costly IRS penalties and fines with timely and expert ACA compliance

Complying with the Affordable Care Act is no simple undertaking.  Since it was first implemented in 2010, it has gone through many pushes and rollbacks, and still yet continues to change.  As a consulting firm focusing exclusively on employee benefits, it is our top priority to monitor the status of the ACA, and to have a complete understanding of the law at all times.  As our client, our goal is to help you develop an affordable benefit package with rich benefits and perks, however,  equally important is our commitment to reducing your risk associated with your benefits and the ACA.  We’ll develop a monthly process for optimizing your ACA compliance with services that include the following:

To inquire about becoming a client of Bavaro Gingerich, please fill out the following form and we will contact soon.


The Affordable Care Act

Following are highlights of the Affordable Care Act for your review.  Understanding the ACA can be complicated for many employers.  We recommend you call our office for assistance in interpreting and complying with this complicated healthcare law.

Individuals and Small Businesses may be eligible for a tax credit under ACA healthcare reform laws. The credit is applied as a discount on your monthly insurance premium. To see if you are eligible for a tax credit, use the Subsidy Calculator  provided by the Health Insurance Marketplace. Or, if you are a business, use the Small Business Tax Credit Calculator  provided by the Health Insurance Marketplace. In any case, both businesses and individuals must purchase benefits through the Health Insurance Marketplace to secure their tax credit.
EMPLOYERS: Employers who have more than 50 full-time equivalent employees must offer those employees benefits that pay for 60% of the minimum essential benefits. If you are in non-compliance, you will incur a penalty of $2,140 per year multiplied by the number of full-time employees, and excludes the first 30 employees. Additionally, the penalty is increased each year by the growth in insurance premiums. However, note you may also incur a penalty when at least one of your employees receives a premium tax credit in the Health Insurance Marketplace (Exchange).

INDIVIDUALS: Following is information on the Individual Mandate of the ACA. However, note the tax penalty for individuals has been recently repealed. The penalty, prior to 2019, affects individuals who failed to obtain qualifying health insurance. Individuals could have coverage through their employer, or through an individual policy to satisfy the requirement. If an individual did not have qualifying health insurance, the tax penalty will be $695 for adults. Additionally, the penalty is $347.50 for each child. However, the maximum family penalty is the greater of 2.5% of income, or three times the adult penalty, which is $2,085. Consequently, your penalty will be applied on your annual tax return.
-There is no longer a pre-existing condition clause. In other words, insurance companies can not increase rates or deny coverage because of a pre-existing condition.
-Your dependents can remain on you policy until they turn 26 years old.
-Insurance companies can not consider gender when setting rates.
-Employer renewals must be based on the same rates as new business.
-The waiting period for employer benefits should not exceed 90 days.
Your employer paid benefits must comply with the “Essential Benefits” of ACA. Specifically, to be in full compliance with the law, your insurance policy must cover at least 60% of the costs of the following essential benefits. If you purchase an individual policy from the marketplace, it’s likely that your policy will also contain these benefits.

-Ambulatory patient services
-Emergency services
-Maternity and newborn care
-Prescription Drugs
-Mental health and Substance ---Abuse disorder services
-Rehabilitative and habilitative services and devices
-Pediatric services, including oral and vision care
-Preventive and wellness services, and chronic disease management