What Employers Need to Know about Employer Shared Responsibility Provisions
Issued April 18, 2013
The Employer Shared Responsibility (ESR) provisions of the Affordable Care Act address the issue of an employer's responsibility to provide health insurance coverage to employees. Effective January 1, 2014, large employers who have 50 or more full-time equivalent (FTE) employees could face substantial fees if they:
- Fail to offer their employees and their dependents health insurance coverage that meets the established minimum essential coverage (MEC) requirements, or
- Offer such coverage and it is deemed unaffordable or does not provide minimum value.
We are taking a proactive approach to helping clients prepare now for these provisions, including:
- Reporting employee hours of service to help businesses accurately calculate how many FTE employees they have;
- Assessing the actuarial value of a company's health plan to determine MEC; and
- Offering tools and resources to help clients determine if these provisions apply to them, with additional guidance to help applicable businesses comply with these requirements.