PPACA Pay or Play?

1. PPACA Pay or Play? Brett S. Morris, Fox Everett Inc.

3. Pay or Play Buy insurance or play the penalty?

4. Pay Tax vs. Provide Coverage? • Penalty applies to every full-time employee (after the first 30). If no coverage is offered • Penalty is avoided by offering affordable coverage with minimum value, even if employee declines. • Cost of coverage applies only to those who take it.

5. Example Assumptions Percentage of EE's Covered 75% EE Share of EE Only Cost 25% EE Share of Dependent Cost 60%

6. Example – Cost of Health Plan Assumptions Percentage of EE's Covered 75% EE Share of EE Only Cost 25% EE Share of Dependent Cost 60%

7. Example – Cost of Health Plan Assumptions Percentage of EE's Covered 75% EE Share of EE Only Cost 25% EE Share of Dependent Cost 60%

8. Example – Cost of Health Plan Assumptions Percentage of EE's Covered 75% EE Share of EE Only Cost 25% EE Share of Dependent Cost 60%

9. Example 1 – Cost of Health Plan

10. Example 1 – Cost of Health Plan

11. Example 1 – Cost of Health Plan

12. Example 1 – Cost of Health Plan

13. Example 1 – Cost of No Plan

14. Example 1 – Cost of No Plan

15. Example 1 – Cost of No Plan

16. Example 1 – Cost of No Plan

17. Example 1 – Cost of No Plan

18. Example 1 – Effect on High Income Employee

19. Example 1 – Effect on High Income Employee

20. Example 1 – Effect on High Income Employee

21. Example 1 – Effect on High Income Employee

22. Example 1 – Effect on High Income Employee

23. Example 1 – Effect on High Income Employee

24. Example 1 – Effect on High Income Employee

25. Example 1 – Effect on High Income Employee

26. Example 1 – Effect on High Income Employee

27. Example 1 – Effect on High Income Employee

28. Example 1 – Effect on High Income Employee

29. Example 1 – Cost of No Plan

30. Example 1 – Cost of No Plan

31. Example 1 – Cost of No Plan

32. Example 1 – Cost of No Plan

33. Example 1 – Cost of No Plan

34. Example 1 – Cost of No Plan

35. Consequences of Gross-Up Pay • Additional employer payroll tax • Additional retirement plan costs • Profit sharing • 401(k) match • Pension accruals • Additional life insurance costs

36. Example 2 – Non-Profit Employer

37. Example 2 – Non-Profit Employer

38. Example 2 – Non-Profit Employer

39. Example 3 – 100 Employees

40. Example 3 – 100 Employees

41. Example 3 – 100 Employees

42. Example 4 – 60 Employees

43. Example 4 – 60 Employees

44. Example 4 – 60 Employees

45. Strategies

46. Multiple Plan Options • Bronze Plan • Higher tiered option • Test the waters with a noncompliant plan • Tin Plan • Individuals may owe individual penalty • Affordability test