bake - October 2013 - 14

labor front

Navigating the Affordable Care Act
(Editor’s note: The following is the first in a two-part series

sign up for Medicaid, or get a plan through the state healthcare

on the Affordable Care Act, written by Carol Kroskey, who is

exchanges that are supposed to go live on the Internet starting

the former senior editor for Bakery and Production magazine.

Oct. 1, 2013. (Whether or not the exchanges will be available

Contact her at bpmbakerygirl@yahoo.com.)

by then is still up in the air.)

Despite all the controversy — and some say, the declining popu-

In 2014, someone who chooses not to buy or obtain health

larity of the legislation — the Affordable Care Act (ACA) of 2010

insurance will be penalized $95 or 1% of household income

is slated to affect every US citizen on Jan. 1, 2014. As employers,

(over a filing threshold — individuals who currently don’t make

bakery owners might think that the one-year delay in the

enough money to have to file taxes won’t be subject to the

implementation of the employer mandate portion of the law has

penalty), whichever is greater. In 2015, this penalty will rise to

provided some breathing room. If you think that, you’re wrong.

$325 per uninsured person or 2% of household income over
the filing threshold. In future years, the penalty will probably

Just because the employer mandate has been delayed (and

continue to rise, but for now, it’s likely that the low penalty may

there’s some question about the legality of President Obama’s

not inspire younger, healthier people to seek health insurance

executive order invalidating that portion of the ACA), currently

until they become ill.

the employee mandate is still scheduled to take effect at the
beginning of next year. “The letter of the law is that everyone

Although the participation of these people is needed to offset

has to have insurance, starting next year,” explained Gary

the large numbers of sick people who were unable to obtain

Kosnoff, Linden Group Health Services, Des Plaines, IL,

insurance before, it remains to be seen whether the ACA’s

to members of the Chicago Area Retail Bakers Association

mandate of universal coverage will bring about these results

at CARBA’s August meeting.

(in other words, don’t be surprised if employees who currently
choose not to participate in your group plan decide not to

In other words, every person is supposed to have health insur-

participate next year either).

ance starting on Jan. 1, 2014, (or at their employers’ open
enrollment date) or be subject to a penalty for not having

As a result — whether or not you currently offer health insur-

coverage. Individuals can meet this requirement if they have

ance to some or all of your employees, and regardless of how

insurance through their employer, buy an individual policy,

many employees you have — provisions in the ACA will still
affect your business, because
you and your employees must

Whether or not you currently offer health
insurance to some or all of your employees,
and regardless of how many employees
you have – provisions in the ACA will still
affect your business, because you and your
employees must have health insurance, one
way or another.

have health insurance, one
way or another. You already
know that the ACA’s 2013
mandates required all plans to
offer women’s preventive care
services, imposed a contribution limit to health flexible
spending accounts (FSAs)
of $2,500, and required any
company that issued more than
250 W-2 forms to list the cost
of the group healthcare plan
on the tax form. (Although,
currently, the value of the

14 < OCT 2013 | bakemag.com
http://www.bakemag.com
bake - October 2013

Table of Contents for the Digital Edition of bake - October 2013
