This Stuff is Complicated!

This Stuff is Complicated!

The number one question being asked by business today… Is my company best served by keeping our health plan in tact…or… is the best choice to drop the plan and allow employees to buy Obamacare?

This stuff is complicated,there is no easy answer. • 2,400 pages of legislation • 19,000 pages of regulations • The Benefit Plan Alternatives ACA Decision Tool: • Considers 32 factors • Makes over 60 calculations and comparisons for each employee in a group • Objective: drill down to a single number, which provides a path forward for each Client

In Obamacare, premium doesn’t matter...huh? Earning $20,000 per year Earning $30,000 per year Employee only: $2,480 per year Employee and Spouse: $1,762 per year Emply, Spouse, and 3 Children: $600 per year • Employee only: • $999 per year • Employee and Spouse: • $400 per year • Emply, Spouse, and 3 Children: • $0 per year • The premium could be $1,000,000, Obamacare pays the difference • The “Premium” of Obamacare doesn’t matter for many of your employees

The premium doesn’t matter, but taxes do… • Today, premiums are paid with Pre-tax dollars • Obamacare is paid Post-tax Pre-tax Amount Post-tax Amount • The Obamacare costs and subsidies need to be evaluated with this major difference in mind

Three Companies Compared Drop the Plan Funding • 97 employees, 69 covered by Heath Plan, 35% marginal tax rate, different levels of income

Cost of Neutral Funding

What Happens If… • What happens if employees helped by Obamacare use it, but those hurt by it remain in the employer plan?

Can your company profit with Obamacare?

This Stuff is Complicated!