Small Business Guide: Affordable Care Act in Washington State
The Affordable Care Act (ACA) gives small businesses in Washington State a range of health insurance options. However, for many businesses in the fast-paced hospitality industry, understanding the specifics of the ACA can be time-consuming and daunting. If you’re a small business owner navigating health coverage options for your employees, here’s a quick guide to understanding the Affordable Care Act in Washington State.
Your Small Business Health Coverage Options Under the ACA
As a small business owner in Washington State, you have several health insurance options under the Affordable Care Act. One of the key components of the ACA is the establishment of Health Insurance Marketplaces, where businesses can shop for and compare health insurance plans. Additionally, the Small Business Health Options Program (SHOP) provides a separate marketplace specifically tailored to the needs of small businesses.
What is the Health Insurance Marketplace in Washington State?
Washington State’s Health Insurance Marketplace is open to businesses with 50 or fewer full-time equivalent employees (FTEs). If you are a small business owner considering using the Marketplace for your health insurance needs, note that you must offer health insurance to all your full-time employees.
Full-time employees are defined as those working 30 or more hours per week on average) to participate.
Comparing Health Insurance Marketplace Plans
In Washington State Marketplace plans are categorized into tiers based on their costs and benefits. When choosing a plan, consider the size of your business, the extent of coverage needed, and your budget.
- Bronze Plans: Lowest monthly premium, but highest out-of-pocket costs for care.
- Silver Plans: Moderate monthly premium, moderate out-of-pocket costs for care.
- Gold Plans: High monthly premium, low out-of-pocket costs for care.
- Platinum Plans: Highest monthly premium, but lowest out-of-pocket costs for care
ACA Compliance & Reporting Requirements for Small Businesses
Small business owners need to understand and adhere to the ACA’s compliance regulations to avoid penalties. To comply with the ACA, businesses must offer all full-time employees and their dependents health insurance coverage. Small businesses also need to ensure that their health plans meet the ACA’s minimum value standard, which requires that the plan covers at least 60% of the total allowed cost of benefits.
Businesses are required to report to the IRS information about the health care coverage they offer employees. This needs to be done annually using Forms 1094-C and 1095-C. Also, businesses must provide their employees with a copy of the Form 1095-B or 1095-C, summarizing the provided health care coverage.
Washington Hospitality: Your Partner for Navigating the ACA
The ACA in Washington State provides a plethora of health insurance options for small businesses. Business owners need to understand these options and the associated benefits, such as tax credits and subsidies. By doing so, you can better choose the right plan for your business and your employees.
By becoming a member of the Washington Hospitality Association, businesses in the hospitality industry can access exclusive, customized insurance plans designed specifically for them. These plans offer large group underwriting, lower contribution and participation requirements, and industry-specific coverage, providing significant advantages over standard small group plans. With benefits like tax credits and subsidies, Washington Hospitality ensures that your business and employees receive the best possible health insurance coverage, tailored to the unique needs of the hospitality sector.
Washington Hospitality Insurance Services is a subsidiary of Washington Hospitality Association. Contact us today for help understanding the ACA.
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