Tulsa Attorneys: Many Small Companies May Cut Health Insurance Coverage

By Davis, KirLee | THE JOURNAL RECORD, February 12, 2013 | Go to article overview

Tulsa Attorneys: Many Small Companies May Cut Health Insurance Coverage


Davis, KirLee, THE JOURNAL RECORD


Many small businesses may choose to reduce or eliminate their employee insurance coverage under evolving federal health care regulations, a pair of McAfee and Taft employee benefits attorneys said Tuesday.

"We're going to see a lot of this happening," attorney Bill Freudenrich told a Tulsa Area Employers Council audience at the downtown Doubletree by Hilton hotel.

Attorney Brandon Long said employers must look at their existing programs and determine whether they could run afoul of the looming no-coverage tax or the inadequate coverage tax.

More than 500 pages of new regulations issued over the last month clouded those issues in some areas, he said, while simplifying them in others. In several instances he advised executives to meet with their consultants or attorneys over several "very tricky" elements these rules present.

Long said the most difficult determination involves figuring out how many full-time employees a company has. The number generally aligns with people working 30 hours a week or 130 hours a month. Firms must keep running tabs of part-time worker hours over extended periods to factor in their full-time-employee equivalents, with variable or seasonal workers requiring still more precautions.

The no-coverage tax, which targets employers with more than 50 full-time workers, charges companies $2,000 a year for each full- time worker (with that employee total reduced by 30) if those employers do not offer minimum essential health insurance coverage to at least 95 percent of that full-time staff and dependents.

Companies with less than 50 full-time employees face the inadequate coverage tax if they fail to offer minimum, affordable coverage for employees and dependents. But these employers are only charged that $3,000 fee for each employee that actually gets coverage and a subsidy from the state health care exchange.

"If your plan qualifies for health care reform and you provide all the essential benefits and it meets all the essential guidelines, it's going to meet the minimum value," Long said, noting that spouses are not included as dependents.

As for keeping it affordable, Freudenrich said the lowest single- coverage policy should cost less than 9.5 percent of the employee's annual income on the W2 form.

Considering the time and cost of monitoring employee hours, much less the cost of complying with health-care expenses under the Consolidated Omnibus Budget Reconciliation Act (COBRA), Freudenrich said some of his small-business clients have chosen to contain costs by offering marginal or no coverage, knowing they face an inadequate coverage fee only if an employee resorts to the state exchange. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Tulsa Attorneys: Many Small Companies May Cut Health Insurance Coverage
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.