The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • ACA Compliance
  • New Jersey Adopts ACA Provision to Lower Healthcare Costs

Articles

New Jersey Adopts ACA Provision to Lower Healthcare Costs

August 26, 2020 Robert Sheen ACA Compliance, Affordable Care Act
New Jersey Adopts ACA Provision to Lower Healthcare Costs

3 minute read:

Earlier this month, New Jersey signed into law a state version of an Affordable Care Act provision, the Health Insurance Assessment (HIA) program.

New Jersey is the first state to have implemented its own statewide HIA and is estimated to bring in over $224 million dollars during the 2021 tax year. The New Jersey HIA is actually an extension of the federal HIA, which is set to expire on January 21, 2021. The official HIA program works by charging a 2.5% tax fee to health insurers and insurance companies. The fee is not new, however, as the federal HIA was first instituted in 2014.

The revenue generated from the HIA is said to be allocated towards providing more affordable, quality health insurance options to New Jersey’s low- to middle-class residents.

“The subsidy program will be available to New Jerseyans with annual income up to 400% of the Federal Poverty Level, which allows an individual earning up to $51,040, and a family of four earning up to $104,800, to qualify for the subsidy program. The estimated average subsidy for an individual would be at least $564 a year, and at least $2,256 a year for a family of four,” according to a press release issued by the office of Governor Phil Murphy.

In short, the HIA will allow the state to provide health insurance subsidies to state residents purchasing coverage through the state’s health exchange.

Regarding the HIA, New Jersey State Senator Joe Vitale said it “will help to ensure that people are able to afford health insurance during this critical time when a global disease is not only threatening their health, but their financial security in unimaginable ways.”

New Jersey’s Governor Phil Murphy has followed with the trend of strengthening the Affordable Care Act amid the COVID-19 health pandemic.

Since COVID-19 first affected the U.S., two historically red states have expanded Medicaid under the ACA, special enrollment periods have been introduced by states all over the country, the Supreme Court ruled in favor of the law’s risk corridors, an ACA Enhancement Bill was proposed by House Democrats, and now, an introduction of the Health Insurance Assessment program on a state level.

All of these changes and adaptations point to one thing: the ACA is here to stay. The law has demonstrated time and time again how important it is to our healthcare ecosystem. And with the healthcare law continuing to engrain itself, and the 2020 election a few short months away, employers should recognize their part to play, as required by the Employer Shared Responsibility Provisions (ESRP), also known as the Employer Mandate.

As a reminder to employers in conjunction with the Employer Shared Responsibility Payment (ESRP), the ACA’s Employer Mandate, Applicable Large Employers (ALEs), organizations with 50 or more full-time employees and full-time equivalent employees, are required to offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets Minimum Value (MV) and is affordable for the employee, or be subject to Internal Revenue Code (IRC) Section 4980H penalties.

If your ACA practices and filing are not tight-knit, it’s time to face the reality that the ACA may be here forever. With more legislation being proposed to enhance the ACA, the law is here to stay.

The IRS has announced that it will begin issuing ACA penalty letters such as Letter 226J after July 15. If your organization is unsure of where it stands in regards to ACA compliance, Trusaic will perform a free ACA Penalty Risk Assessment to diagnose risk areas in your compliance strategy and get you on track.

To learn more about ACA compliance in 2021, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Summary
New Jersey Adopts ACA Provision to Lower Healthcare Costs
Article Name
New Jersey Adopts ACA Provision to Lower Healthcare Costs
Description
Employers should note that the ACA is becoming further ingrained in our healthcare ecosystem
Author
Robert Sheen
Publisher Name
The ACA Times
Publisher Logo
The ACA Times
Short URL of this page: https://acatimes.com/znz
Robert Sheen

Robert Sheen

Robert Sheen, Esq., is editor-in-chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic, Inc. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

ACA ComplianceACA Employer MandateACA Enhancement BillACA Penalty Risk AssessmentACA ReportingAffordable Care ActApplicable Large EmployersCOVID-19Covid-19 PandemicEmployer Shared Responsibility Provisions (ESRP)Federal Poverty LevelGovernor Phil MurphyHealth Care CoverageHealth Insurance AssessmentHealth Insurance Assessment (HIA)Health Insurance MarketplaceHouse DemocratsInternal Revenue Code (IRC) Section 4980H PenaltiesIRSIRS Letter 226JJoe VitaleMedicaidMinimum Essential Coverage (MEC)Minimum Value (MV)New JerseyState Health ExchangeSupreme Court
Related Articles Three Essential Pay Equity Practices, According to Iceland Three Essential Pay Equity Practices, According to Iceland
Related Articles DFEH Adds New Guidance for SB 973 Reporting Due on March 31 DFEH Adds New Guidance for SB 973 Reporting Due on March 31
Related Articles Georgia Results May Have Impact on Federal Pay Equity Law Georgia Results May Have Impact on Federal Pay Equity Law
Related Articles Administration Predicts Lower ACA Enrollment by Robert Sheen  •  
Related Articles Supreme Court Will Hear Challenge to ACA by Robert Sheen  •  
Related Articles IRS Eases Rules on Hardship Exemptions by Robert Sheen  •  
5 Common ACA Compliance Mistakes 2020
Subscribe
Clean data owns future

Achieve Pay Equity

Popular Posts

  • New Individual Mandate Regulations: What You Need to Know
  • ACA Improvements to Expect from the Biden Administration
  • Employers, Mark These Key 2021 Dates for 2020 ACA Reporting
  • Don’t Forget The New 1095-C Codes Specific to The 2020 Tax Year
  • Minimize Penalties with ACA Best Practices for the Holiday Season
  • The ACA is Central to American Health and Wellbeing
  • PPP Loans Are Now Available, Both First Draw and Second Draw PPP Loans
  • Democrats Gain Senate, Paving the Way for Biden’s ACA Agenda

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!