Employee Benefit Strategy

Question 1

Employee Benefit Strategy

Key Topics in Recommending an EE Benefits Strategy

Answer 1

• Data collection
• Understanding senior leadership benefits philosophy
• Guiding principles and objectives
• Understanding regulatory constraints

Question 2

Employee Benefit Strategy

Key Regulatory Constraints under PPACA

Answer 2

• Employer Shared Responsibility Rules (ESR)
• Cadillac Tax
• ER Reporting Requirements

Question 3

Employee Benefit Strategy

ESR Section A

Answer 3

Penalty =$2,000 per year per all FTEs (minus first 30)

1. ER must offer MEC to at least 95% of FTEs
2. At least 1 FTE enrolls in Exchange and receives federal subsidy

Question 4

Employee Benefit Strategy

ESR Section B

Answer 4

Penalty =$3,000 per year per each FTE that enrolls in exchange and receives subsidy

1. ER offers MEC to at least 95% of FTEs, but coverage is “unaffordable” or doesn’t meet “minimum actuarial value”

Question 5

Employee Benefit Strategy

Cadillac Tax

Answer 5

40% tax on insurers that offer healthcare coverage costing more than $10,200/$27,500 for individuals/families

Question 6

Employee Benefit Strategy

Employer Reporting Requirements

Answer 6

• IRC Section 6055 = Focus on enrollment in MEC
• IRC Section 6056 = Focus on offer of MEC to FTEs
  
  • Used to help assess ESR penalties