In 2016, employers with at least 50 full-time equivalent employees (FTEs) must offer affordable, minimum-value health coverage to at least 95 percent of their full-time employees and their dependents, or face a penalty. Employers will need to be certain they are providing coverage that meets the law’s requirements. Only small employers (those with fewer than 50 FTEs) will remain unaffected by penalties for not providing affordable, minimum-value coverage to their workforces. For more information, see 5 things to know and do to guard against health care reform penalties and calculate your company’s FTEs with the FTE calculator.

Starting in 2016, businesses will be required to report information about their employee health coverage, including basic employee data, dates and type of coverage, cost-sharing and any other information required by the IRS. Since many employers struggle to make heads or tails of health care reform requirements, they may choose to have a consultant or provider help file the reports. To learn more about exactly what’s required, take a look at these fact sheets:

• Employer-Sponsored Coverage Reporting
• Minimum Essential Coverage Reporting
• W-2 Reporting

Rising health care costs have led many employers to consider high-deductible health plans (HDHPs). A recent PricewaterhouseCoopers study found that 83 percent of employers are now offering HDHPs, and 25 percent are offering only HDHPs.² It’s important to note that roughly half of workers (52 percent) who chose HDHPs last year at least somewhat agree they regret their decisions. Still, many will select high-deductible plans again, some because they’re the only employer-sponsored insurance options available, others because cost is the driving factor for plan selection.³ To learn more about how to implement an HDHP with out-of-pocket cost protection, see: The perfect team: How voluntary insurance complements high-deductible health plans.

Exchanges are online benefits marketplaces where individuals and businesses can buy insurance. Exchanges can do some of the heavy lifting that usually accompanies workplace benefits, such as paperwork or coordinating between multiple carriers. This can help businesses to save on administrative costs. Additionally, some exchanges offer a defined contribution option, so employers can pay a fixed amount for benefits, allowing employees to buy up if they want additional health care coverage and helping to make health care costs predictable for employers. To learn more, see 6 key facts about health care exchanges.

Voluntary insurance has long served as a way to help protect employees when they’re sick or injured – regardless of their major medical insurance coverage. But now, more than ever, these benefits help provide employees with a financial safety net for unexpected medical expenses.

Voluntary policies can be offered at no direct cost to the policyholder’s employer and provide cash for costs not covered by major medical insurance. To learn more, see What is voluntary insurance and why do employees need it?

With greater responsibility for their health care costs, employees are eager to have the resources they need to make sound benefits decisions. Many even anticipate them: 89 percent of employees at least somewhat agree that they expect more decision-making tools and support during their health insurance and benefits selection/enrollment experiences, because they’re more responsible for their health care costs than in years past.1 A few resources that employees say are helpful include interactive online tools and summaries of past medical claims and expenses.2 To learn more about open enrollment best practices, see 2015 Open Enrollment Trends.

Health care reform rules encourage employers to use incentive programs, and allow employers to reward employees with up to 30 percent lower rates for participation (and up to 50 percent for tobacco use cessation). So do employees use these tools? Aflac’s 2015 Open Enrollment Survey found that many employees use them when their employers make them available. For instance, just 10 percent of employees say their employers offered wearable devices to track wellness or other health conditions, but over half (54 percent) of those with the option used it.³ Learn more about the wellness programs under the Affordable Care Act.

Health care reform doesn’t require companies to extend coverage to spouses, which means businesses have flexibility when it comes to offering spouse or partner coverage. With the legalization of same-sex marriage, some employers are making benefits requirements universal for all families applying for benefits. Still, others are cutting back on spousal benefits entirely.

Before making drastic changes to spousal coverage, it’s important to consider the ramifications for your business: Among employees married or living with partners, 72 percent say they’d feel extremely or very negatively if their company dropped spouse/partner coverage from their employer-sponsored health insurance.^1,5 Learn more about the importance of benefits to employees.

While it’s not going into effect this year, a 40 percent Cadillac Tax (also called the health care law’s excise tax) is weighing heavy on many employers’ minds. As it stands, the law is scheduled to take effect for applicable coverage with plan years beginning on or after Jan. 1, 2020. Although the tax is still several years away and regulations may evolve before it is implemented, employers should begin now to determine how their plans may be affected when the tax becomes reality. For a more in-depth discussion about this tax, see Cadillac Tax frequently asked questions and answers.