One of the most significant provisions of the Patient Protection and Affordable Care Act of 2010 will go into effect Jan. 1: shared responsibility, also known as “play or pay.”
Beginning in 2015, the health care act requires “large” employers — including nonprofits — to offer a “minimum value” of “affordable health coverage” to their full-time employees or risk a penalty if just one full-time employee receives a premium tax credit for purchasing individual coverage through one of the new affordable insurance exchanges. The rules are complex, but if you have 50 or more full-time employees — or a mix of part-time and full-time employees that’s “equivalent” to 50 or more full-timers — you should determine whether your coverage meets the requirements. If it doesn’t, you need to consider whether you want to adjust coverage to comply or risk the penalties.
If you’re a smaller organization, be aware that, also beginning in 2015, an enhanced version of the health care coverage tax credit may be available to reimburse your nonprofit for up to 35% of the health care premiums you paid. Contact us if you have questions on how either credit will affect your nonprofit.
