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Employer FAQs

Affordable Care Act FAQs for Employers

Employer FAQs

Can I get my premium activity statement/invoice online or emailed to me?

At this time, premium activity statements are mailed to employers monthly and are not available online.

How do I sign up for Online Enrollment?

To sign up for NHP’s online enrollment tool, please contact your broker and/or NHP Account Manager. This is your first step to get started.

I'm still a little confused about how our deductible plan works.

Click on this link to learn more about how cost sharing works.

This important plan information explains how you and NHP share the cost of your health care. Included is a glossary of common health care cost-sharing terms, such as “copays” and “deductible” and an example of how these cost-sharing components work together.

Affordable Care Act FAQs for Employers

What does national health reform mean for employers?

National health reform includes new responsibilities and opportunities for employers. Importantly, the law provides incentives to help make offering health insurance coverage to workers easier and, in some cases, more affordable.

The law also creates financial consequences for some large businesses that don’t offer affordable coverage to full-time workers.

How does national health reform impact small business owners in Massachusetts?

Employers can get up to a 50% federal tax credit when they buy health insurance through the Health Connector, if they:

  • Have 25 or fewer full-time employees, and
  • Pay average annual wages below $50,000, and
  • At least half of the premiums for employee health insurance.

In Massachusetts, small businesses that promote wellness in the workplace can also get up to a 15% discount when they buy insurance through the Health Connector.

Will there be new penalties for employers and how do they apply?

The federal law creates new employer penalties. They will start in 2015 and apply to employers with more than 50 workers only.

There may be a penalty for some employers that do not offer affordable health insurance coverage to full-time employees. It can be up to be $2,000 per each full‐time worker. The penalty will be triggered should any full-time employee gets subsidized insurance from a health insurance marketplace, like the Health Connector. This happens when a full-time worker, whose household income is under 400% the federal poverty level, is either:

  • Not offered health insurance, or
  • Is offered health insurance that is unaffordable and/or does not meet a minimum value standard.

Potential penalties are calculated differently depending on whether the employer offers their full-time workers no coverage, or unaffordable or substandard coverage. Employers that do not offer any coverage can be subject to $2,000 per full-time worker.

Employers that offer substandard coverage may be subject to a penalty that will be the lower of the following two options:

  • $3,000 for any employee who receives a subsidy through an insurance exchange, OR
  • $2,000 multiplied by all of the employer’s full‐time employees.

The first 30 workers can be excluded towards the calculation of this penalty.