ObamaCare and Your Company Drivers

Now that it is a certainty that the Patient Protection and Affordable Care Act, commonly called Obamacare, is going to be fully implemented by 2014, you and many small businesses just like you may find yourselves asking the same questions:

  • Will I have to offer insurance for ALL of my employees?
  • How much insurance must I offer and how much of it must my company pay?
  • What's the bottom line and is there a way to protect my profits?

At American Dedicated Logistics we've been keeping a close eye on these important developments and we've got solutions that can help you protect your bottom line without effecting your daily operation. In this flyer we've outlined some important notes on Obamacare's mandates and how best to proceed.

Dollar Crushing Regulations

  • Starting in 2014, all employers with over fifty employees will be required to provide "adequate" and affordable health insurance to all employees OR face annual penalties of $2,000 per worker.
  • "Adequate" will be defined by both federal and state mandates on what MUST be included.
  • The insurance must pay a minimum of 60% of healthcare costs.
  • No employee can be asked to pay more than 9.5% of their annual income after deductions.
  • Health Plans MUST include ambulatory services, emergency services, hospitalization, maternity and newborn care, mental health and substance use disorder services, including behavioral health treatment, prescription drugs, rehabilitative and habilitative services and devices, laboratory services, preventive and wellness services, disease management, pediatric services, oral and vision care as well as any additional state mandates which must be included for each state where the business employs people.
  • Employers with over 200 employees MUST automatically enroll all new employees in health care plans unless they specifically opt out of the plan.
  • If an employee opts out of the company plan the company will still have to pay that employee a voucher equal to the portion the company pays towards the plan for each employee.
  • No employee can be charged more than any other employee so the amount any employee can be charged will be based on 9.5% of the annual household income of the company's lowest paid employee.

What does all of this mean?

  • If your company has over 50 employees you will have to offer a high value health insurance plan at a cost of no more than about $150 to the employee monthly. These healthcare plans average over $4000 per year for an individual plan and $10,000 per year for a family plan.
  • If you elect not to provide coverage you will face a yearly tax of at least $2000 per employee with the first 30 employees exempted.
  • Employees can refuse your coverage and seek federal dollars to purchase a plan on the state or federal exchanges but this will still result in taxes on your business!

How can we help?

  • If your company has over 50 non-driver employees, we will save you as much as $2000 per year above what we could already save you by offering you a contract driver solution.
  • If your company has over 50 employees, but less than 50 who are not drivers, switching your driver team to a contract solution will allow you to COMPLETELY AVOID THE MANDATE. This will save you money with even your non-driver employees.
  • If your company can achieve a total employee count of under 25 by outsourcing your drivers, not only will you not be subject to the mandates, but you will also be eligible for government subsidies to help you get insurance for your remaining workers.
  • Contact one of our contract management professionals today to see how much you can save and to see how the plan can work for your company!

Don't let your profits be burned up by expensive healthcare mandates!

* This information has been gathered from numerous sources and does not contain all of the potential mandates and costs of Obamacare. Opinions vary on whether this will help to bring down insurance costs or whether they will continue to increase. We encourage all businesses to consult with their CPA to ensure compliance. It is however clear that this will add considerable cost to ANY company over 50 employees who has not until now been offering a considerable healthcare benefit. We firmly believe there is a better way to do business.