The main impact of PPACA won't be felt until 2014 but companies must make strategic decisions now. The look back period to see if someone is considered a part-time employee (working less than 30hr/week) starts now.

“Now is the time for companies, and individuals, to develop a strategic plan for their health insurance, otherwise they will find themselves with few options in 2014”, said Mike Battaglia, of .“One of those options is going to be what amounts to a tax for not offering health care coverage.”

For firms which do not offer insurance any insurance, have more than 50 employees, and have at least one employee receiving insurance subsidies, they must pay a tax of $2000 per subsidized employee. The tax is applied to all of a firm's full-time employees (after excluding the first 30), not just those that are subsidized. For example a firm with 51 employees would pay $42,000 in new annual taxes, and an additional $2,000 tax for every new hire, states the website

Mr. Battaglia said the world of health insurance is changing and will continue to change because of the national health care act.

“Most people don't realize that PPACA has fundamentally changed how health insurance works, and how it will be purchased in the future,” he said. The plan was to have the federal law make shopping for health insurance easier. But that isn't turning out to be the case. Most of my clients need even more help with understanding their options”

Mr. Battaglia said he expects rates to rise, because of the minimal health benefits and the fewer options used to calculate rates. The biggest hit will be for young people.

“They changed the pricing ratio used to create pricing bands for young to old from 1:5 to 1:3, since they aren't going to lower the prices for the older clients, young clients will subsidize the older.

The under 35 demographic is targeted by PPACS because many of these people are healthy and their premiums are needed to offset the not-so health.

For more information visit or call 972-832-4494.

Mike Battaglia
[email protected]