Oregon, like most states in the USA, applies two different rules for small businesses and large enterprises. The indicator that is used for deciding whether a company is a small or large employer is the number of employees it has on its books. According to Oregon health insurance rules, only companies that have at least 50 employees are required to provide health insurance to their workers and the dependents of those workers.
Even then, it is possible for a larger employer not to provide coverage, though that will attract a tax penalty which can be quite high. This penalty is applied if any of their full-time employees apply for financial assistance for purposes of obtaining health insurance. Typically, this is done on an exchange program which is found on the Affordable Healthcare Website. These are what is known as the shared responsibility rules.
There are other benefits and support for those employers that have less than 25 full-time workers on their books. A tax credit has been put in place. This tax credit is meant to compensate these smaller businesses for the extra premiums that they have to pay because of their size when they apply for insurance coverage on behalf of their employees. Recent estimates show that the costs to these smallest businesses can be about one and a half times those of the larger businesses.
Health Insurance for Self-Employed, Part Time, and Contract Workers
Those who are not formally employed on a full-time basis are still able to buy coverage from the government exchange in Oregon, bearing in mind the provisions of the Family Medical Leave Act.
In some cases, there could be subsidies available that reduce the final costs that they have to pay. It is important to remember that for purposes of the Affordable Healthcare Act, a full-time employee in Oregon is limited to one who works at least 30 hours a week. Failure to comply with this rule will lead to some taxation issues for both the employer and employee.
Some people are excluded completely from being referred to employees when dealing with health insurance, such as:
- Any person who is the sole proprietor of a business i.e. the owner of a business cannot claim to be an employee.
- The same rules apply to a partner in a business who owns a significant portion of the shares.
- The law excludes those who own a corporation outright or those who have more than 2% of shares in an S Corporation. The same rules apply for a more than 2% ownership of a limited liability company.
- The laws were written to exclude anyone who is a spouse of another who falls within the categories listed above.
Determining How Much to Pay for Employee Health Insurance
There are a number of factors that are taken into consideration when deciding what the final health insurance premium will be:
- What is the average age of the employees as well as his or her dependents?
- What level of benefits are planned for the employees and dependents?
- What is the location in terms of the state as well as the locality for the company?
- How many people in total will be on the various plans if they are approved?
- How many employees actually smoke tobacco?
Advice for Employees on Health Insurance
Your employer is responsible for negotiating the package if they fall within the larger limits, contact HKM Employment Attorneys.