The Effects of the Affordable Care Act on Restaurants

The Effects of the Affordable Care Act on Restaurants

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by Jonathan Schulman on 05/02/2016Leave a Comment
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The Effects of the Affordable Care act on Restaurants

At Schulman Insurance Brokerage, we understand the importance of providing quality, affordable healthcare coverage for your employees, especially since the Affordable Care Act (ACA) is now in full swing. Restaurant owners, in particular those with 50 or more employees, could experience profit losses if they aren’t careful in their choice of a health insurance broker.

ACA Requirements for Restaurants

According the ACA, restaurants with over 50 full time employees must provide 95 percent of those employees with coverage or be subject to penalties ranging from $2,000 to $3,000. The Minimum Essential Coverage (MEC) requirements are these:

• Coverage of at least 60 percent of employee medical expenses
• Substantial physician services and in-patient hospital coverage
• Employee premiums cannot exceed 9.5 percent of their household income.

Because the ACA defines full time employees as anyone working 30 or more hours per week, there are more employees to insure which means higher costs for small business health insurance plans.

ACA Penalties

Along with the potential for higher plan costs, employers who don’t meet the Minimum Essential Coverage requirement are subject to the aforementioned penalties. The best way to avoid penalization is to comply with ACA provisions by doing the following:

• Consider every coverage option available – with a little research and a good broker, it’s possible to find a plan that is affordable for both employer and employee.
• Provide a variety of choices – by offering plans with varying deductibles and co-pays, employers can reduce coverage costs for both themselves and their full time workers.
• Choose the best broker – make sure you choose a broker experienced in business health insurance and familiar with the ACA requirements that apply to your specific business.

Providing Minimal Essential Coverage (MEC) can really take a toll on your profit margin if you don’t choose your coverage wisely. Make the best choice by calling Schulman Insurance Brokerage today at (800) 385-2208.

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