Financial Brokerage Services is assisting employers in accomplishing the Virginia group health insurance exchange notice before the October 1, 2013 deadline. We offer this service to businesses covered by the Fair Labor Standards Act (FLSA) throughout the greater Washington, DC area.
In designing employee benefit plans, we ensure that our clients adhere to the requirements of the Patient Protection and Affordable Care Act (PPACA). The act stipulates that employers should provide notices to both current and new employees about the health insurance exchanges in their state from October onwards. Once all businesses have accomplished the exchange notices, the program is set to begin on January 1, 2014.
To effectively educate employees on the health plans available in their state, the notice must include a list of services provided by the exchanges along with their contact information. More importantly, it should inform the recipient of how it will affect the employer’s contributions. For instance, the employee may lose contributions to their health plans if they purchase insurance through an exchange. Because of tax purposes, there is a possibility that a portion or all of these contributions may be excluded from their income.
In contrast, there are situations where employees are eligible for cost-sharing reductions or premium tax credits. One scenario is when the employer has less than a 60% share of the total costs of the employer-sponsored plan. If the employee utilizes an exchange to purchase a qualified health plan, they can enjoy the full tax credit.
With our team’s extensive experience, Financial Brokerage Services can guide clients throughout the confusing process of identifying their business and determining the tax implications on their employees. If the coverage is paid pre-tax dollars, the latter’s tax obligations may change if they buy coverage through a state exchange. Likewise, they may lose the tax-free contributions of their employers to their health coverage, if any.
Once we finish accomplishing the exchange notice with our clients, we will then allow them to focus on integrating it into their overall health benefits communications strategy. Not only will they maintain transparency in informing employees of their rights, they will comply with health care reforms, as well.
Financial Brokerage Services offers customized group health insurance for Maryland, Washington, DC, and Virginia businesses. Understanding that each client is unique, we ensure that their health benefit programs fit the needs of their business. As a result, they can increase their compensation package while taking advantage of a business tax deduction for reduced coverage costs. To learn more, call us at (301) 320-2000 and we will give you a comprehensive analysis and quote.