Health Insurance Premiums under ACA

[Guest Ellen Y.]

A company has fewer than 50 employees and has been paying insurance premiums for both employees and dependents. Can they stop paying for the insurance and only offer affordable coverage:

Can they pay premiums for only select employees, i.e. HCE's?

[lvena]

Group does not have to offer coverage of any kind. If they do offer coverage the carrier will require some level of particiation and employer contribution, so to offer without any employer contribution would not achieve the participation requirements.

There has never been non-discrimination rules on fully-insured coverage. If this group is self-funded then they would be subject to these rules and would be a problem.

[GBurns]

I did not understand what you mean by "only offer affordable coverage". Affordable to whom?

If the current coverage has been or is being paid, it must be affordable.

In some states, under their small group/employer health insurance laws if the employer pays or any premium, coverage must be offered to all. However, there is no requirement for any employer to offer or provide health insurance.

[lvena]

I did not understand what you mean by "only offer affordable coverage". Affordable to whom?

If the current coverage has been or is being paid, it must be affordable.

In some states, under their small group/employer health insurance laws if the employer pays or any premium, coverage must be offered to all. However, there is no requirement for any employer to offer or provide health insurance.

She is referring to affordable coverage as defined in PPACA.