How to Combat the ObamaCare “Glitch” & Avoid Employee Backlash

Under ObamaCare, small businesses (less than 50 full-time employees) are not required to offer health insurance. Many who currently provide employee coverage may consider dropping it completely, rather than face potentially higher premiums and other compliance issues.

If you are considering dropping your healthcare coverage, I advise you to communicate this to your employees NOW, in order to avoid a potential backlash of anger, resignations and workplace disruption.

What Is the ObamaCare Glitch?

An often-overlooked impact of ObamaCare, sometimes called the “family glitch,” could have an adverse effect on your best employees.

Suppose you offer coverage to your employees that meets the affordability requirements of ObamaCare, but they cannot afford to pay for the additional costs of family coverage. Now, your employee is forced to try to buy coverage through the healthcare exchanges. The problem, though, is that your employee no longer qualifies for the family subsidy and has to pay the full burden of the insurance premium—simply because you offer family coverage.

How to Combat the ObamaCare Glitch

As a business owner, you have a few ways to combat the “ObamaCare glitch.”

First, you could not offer health insurance to your employees at all, a plan that many businesses will implement beginning in 2014. But be aware of the potential negative consequences.

Secondly, you could choose to offer employee-only coverage.

Thirdly, you could give your employees a healthcare allowance and they could obtain their own coverage in the open market.

Make a Decision NOW

Regardless of your final choice, you need to start communicating with your employees so they have sufficient time to plan what they need to do.

I can help you decide what is best for your business. Call or email us today to set up a free, no-obligation ObamaCare analysis.

With a well thought-out strategy and upfront communication, you can avoid a potential employee backlash and stay one-step ahead of your competition.