If you’re lucky enough to have employer sponsored healthcare coverage, you’re only paying a tiny portion of your healthcare bill.
While it may seem like your healthcare costs are rising, your employer is paying more as well. In 2013, the average cost of a standard healthcare plan was just over $12,000. As an employee, you’re paying just over 25% of the total cost of the policy. Your employer is paying nearly 75% of the cost. But, as healthcare costs increase, you could be paying more for healthcare. It’s even possible that some employers may completely change the pricing structure of the insurance.
The Affordable Care Act is bringing many changes to how employers and employees obtain health insurance coverage. One of the key components of the ACA is that employers with over 50 employees must offer some form of health insurance to employees or face a fine. Employers with less than 50 employees, which comprises nearly 96% of all American businesses, are exempt from this portion of the law.
Of course, with the state exchanges being implemented, employer coverage may become a thing of the past. While employers who don’t offer health insurance will be fined, the fine is much cheaper than actually offering health insurance. Employees, who are eligible for tax credits to help offset the cost of purchasing health insurance, will be able to find more affordable coverage under the state health exchanges.
Additionally, businesses with less than 50 employees will also be offered tax credits if they choose to offer health insurance. Before, small businesses found it extremely expensive to offer health insurance even with employee contribution, but now risk is pooled and insurance is more affordable. Only time will tell how the employer-employee-health insurance relationship will play out, but keep your eyes and ears open for change.