Self Insured Program California for small businesses
by Hubie Laugharn
Solana Insurance Services
This is what we know as of 5-13-13
Partial-Self Funding- Self insured program california– Do you want to pay for a whole loaf of bread when you know you will only eat half of it?
How do you value your Company Healthcare?
A percent of compensation or a percent of profitability?
Large Group (LG); 51 employees or more:
Equivalent employees: It is important to understand that hours of part-time employees will count towards the total amount of credited full-time employees a company has for Obama Care. Understand the formula. For example, a company my think they 35 full-time employees and 20 part-time employees keeping them in the 50 or less category, but adding the total number of hours the part-time employees work and using the “formula”, the same company might have to count their full-time employees with an additional 16 employees for a total of 51 full-time equivalent employees thus putting then in the 51 + category rules!
You can plan on 2 classes of employees:
Class 1—Full time employees 30+ hrs per week
Class 2—Part time employees 29 hrs max per week
Employer’s Mandate in Obama Care will require coverage at the required “Minimum Essential Value” (MEV) for all full time employees. In addition, the “Mandate” requires the Single / Employee Only Contribution to be NO MORE than 9.5% of their W-2 wages. This means most employers will have to move their contribution for an employee to 100%.