The Strategic Health Care Update David Ratner, Dave’s Soda & Pet City Neil Trautwein, NRF

Dave’s Soda & Pet City David Ratner, entrepreneur. From a humble start – has built his business into a four-store chain that competes with and thrives against superstore chains. Dave did not have to contend with the Affordable Care Act when starting his business 27 years ago. Would Dave’s Soda & Pet City still thrive today?

How Many Employees are Required to Make Me Subject to Penalties? If < 50 Part-Time Hours/120 = FTE If FT + FTE > 50 Business is subject to ACA penalties If FT + FTE < 50 Business is not subject to ACA penalties If > 50 Business is subject to ACA penalties

Applicable Employers are Subject to Mandate Penalties as of 2014 Applicable ERs must offer FT EEs >50 FT or FTE Affordable Coverage of Minimum Value Affordability Test Minimum Value Test Or Pay Penalties (Tax) Failure to Offer Coverage Failure to Offer Affordable Coverage

Who Must I Offer Coverage To? Full-Time Employees NOT Part- Time NOT Seasonal NOT Temporary Dependents

Who Must I Pay For? Full-Time EEs Not Dependents Not Part-Time Not Temporary or Seasonal

Who is Full-Time? 30 hours per week per month on average If hired as full-time, waiting period can be no longer than 90 days Can “look-back” as much as one year in exchange for an equal period of coverage

What are the Mandate Penalties? Failing to Offer Coverage $2,000 X [All FTE – 30] Failing to Offer Affordable Coverage Lesser of $3,000 x Applicable EE or $2,000 X [All FTE – 30]

What Does “Affordable” Mean? 9.5 % of Family Income Safe Harbor of Employee Wages? Must be of Minimum Value 60% Actuarial Value Calculator Safe-Harbor Checklist Actuarial Certification

What Should I Ask Myself? Am I big enough to trigger penalties? Will I grow beyond 50 employees by 2014 or later? What new coverage options are available? – Health Insurance Exchanges – Small Employer Tax Credits Summary of Benefits and Coverage mandate/penalties

Contact info: David Ratner President, Dave’s Soda & Pet City Neil Trautwein Vice President, Employee Benefits Policy Counsel Materials are also available at