It’s that time of year again. Open Enrollment period is here and as employers, you must engage your employees and get them ready.
The Affordable Care Act is still the health coverage standard and with 2020 comes a couple changes. To help you better navigate open enrollment season for health coverage in 2020, here are three things to keep in mind as you prepare your employees.
Open enrollment is from October 15, 2019 to January 31, 2020.
California residents must be enrolled in a health insurance policy by January 31, 2020 to receive coverage for the rest of the year. Employer-based health plans have their own enrollment periods, but it is important to keep this deadline in mind as a benchmark.
What You Should Do Next
Encourage your employees to sign up for health coverage and make sure they pay the first month’s premium by the end of 2019. This way in the new year, employees will have coverage for 2020 and always be protected in case something unexpected happens.
Health insurance providers may have changed.
Annual changes from the Affordable Care Act and low premium increase rates may have changed the health insurance providers and their offerings. For example, Anthem Blue Cross will be expanding its offerings in California but won’t be available in certain areas anymore.
What You Should Do Next
In light of these changes, make sure to review any new offerings with your broker and understand any new details in case your employees need clarification.
Make any changes clear and simple for your employees so they can easily understand and know what to expect for the upcoming year.
Premiums rates will be lower in 2020 but at a cost.
In order to keep the annual premium increase rates low, California is passing two state-wide initiatives:
- Middle-class enrollees will be offered a state-funded tax credit.
- Those who don’t enroll will get hit with a new state tax penalty.
The new penalty will be similar to the one under the Affordable Care Act: $695 per adult and $347.50 per child under 18, or 2.5% of annual household income, whichever is greater.
What You Should Do Next
As employers, you should encourage your employees to enroll in health coverage to help them avoid these penalties—and perhaps even be eligible to receive tax credit.
2020 is coming soon so make sure to get your employees enrolled in health insurance. Contact the experts at CorpStrat for a consultation and information about employer-based health plans for the upcoming year.