Health Care Reform
Since Jan. 1, 2014, the Affordable Care Act – commonly known as Health Care Reform or Obamacare – has required everyone to have health care coverage or pay a fine. Individuals can get the required insurance through an employer plan (such as Purdue’s plans for benefits-eligible faculty and staff, or a spouse’s employer plan), through a government program (such as Medicare or Medicaid) or through insurance they buy on their own.
The insurance must meet IRS requirements known as affordable and minimum value coverage. According to the healthcare.gov website, employer coverage is considered affordable if the employee’s share of the annual premium for the lowest priced self-only plan is no greater than 9.56% of annual household income. The Purdue Health Plan Plus HSA 2 has a self-only premium of $0 per year, which means the coverage is affordable. Minimum value coverage is defined as a health plan that is designed to pay at least 60% of the total cost of medical services for a standard population. Purdue Health Plans have an 80/20 or 75/25 cost share with employees, fulfilling the minimum value coverage requirement. Since Purdue’s plans are both affordable and have minimum value, an employee who has been offered health insurance through Purdue will not be eligible to receive a subsidy should he or she decide to go to the Marketplace.
If you are currently benefits-eligible through Purdue, have chosen to go the Marketplace, and have received a subsidy, you should contact a tax advisor to discuss the possibility of needing to pay back the subsidy and potential penalties.
To help those who are looking to buy insurance on their own, the government’s Health Insurance Marketplace —HealthCare.gov – connects people to the health insurance “exchanges” available in their area.
Purdue employees, business offices, hiring managers and Human Resources all have responsibilities under Health Care Reform. Follow the links below for more details to help you understand your obligations. Check this site in the future for new information as it becomes available.
For questions related to Health Care Reform’s impact on Purdue, please email HR at firstname.lastname@example.org.
How various Purdue employees may be affected
- Benefits-eligible faculty and staff: Your Purdue medical plan is likely your best option
- What are your responsibilities under Health Care Reform?
Definitions and details