I have elected to offer Dental Insurance to my employees for 2014, what does this mean for them?

Your employees will be enrolled in their dental plan selection and you will be billed directly by Delta Dental.

What will happen to the deductible and out of pocket limits for the extension period? Will my employees be credited for any use of deductible or out of pocket expenses during the period of extension?

On January 1, 2014, the deductible and out of pocket amounts for your 2013 health plan will reset to zero, as they would at the beginning of any plan year. If your employees have selected the same carrier for their 2014 Vermont Health Connect plan, any deductible and out of pocket amounts accumulated from January 1, 2014 until the end of the extension period will apply to their 2014 Vermont Health Connect plan.

What are Cost-Sharing Reductions?

If you purchase coverage as an individual (not through your employer) and your household income is less than 300% FPL ($34,470 for an individual or $70,650 for a family of four), you may be eligible for help to reduce your out-of-pocket medical expenses. In order to qualify for these cost-sharing reductions, you must purchase a silver-level plan on Vermont Health Connect.

What happens if I start offering coverage with 49 full-time employees and later hire more?

If a small employer (50 or fewer employees) offers coverage to employees through Vermont Health Connect and then hires over 50 full-time employees, the business will still be treated as a small employer, and therefore continue to offer coverage through Vermont Health Connect, until the employer no longer chooses to offer an employer plan.

If a business does not offer health insurance and its employees buy health plans through Vermont Health Connect on their own, can the business still contribute to an HSA?

Yes. Both Blue Cross Blue Shield of VT and MVP Health Care offer high deductible health plans through Vermont Health Connect that may be paired with HSAs. For more details on HSAs, FSAs, and HRAs, please visit Vermont Health Connect's Tax-Favored Accounts Fact Sheet.

What happens to me if my business decides not to offer health coverage to my employees?

Depending on the size of your business, you might be subject to a state assessment, a federal assessment (starting in 2015) or both. If your business has fewer than 50 full-time equivalent employees (“FTEs”), then you will not be obligated to pay a federal assessment if you choose not to offer health coverage. Like larger businesses, however, you will still be required to pay a Vermont assessment of approximately $40 per month for each uncovered FTE, just as you did in past years – although there is no penalty for the first four uncovered FTEs. Because many small businesses are accustomed to contributing hundreds of dollars per employee per month toward the cost of health care, the decision to drop coverage might leave you with considerably more money on your balance sheet. That, in turn, will lead to more choices. Do you increase employee compensation? If so, do you do so in the form of bonuses or other perks? These decisions will vary from employer to employer based on their particular circumstances. Businesses with 50 or more FTEs will be subject to a federal assessment for not offering adequate coverage beginning in 2015. It is important to note that whether an employer is subject to this assessment depends on the number of its FTEs, as defined by the IRS. This is not the same as determining if your business qualifies as a small business in Vermont. In other words, a business that employs 40 full-time workers and 40 half-time workers would be considered a small business for the purpose of qualifying to use Vermont Health Connect, but might not be considered a small business for the purposes of avoiding the federal assessment for not offering coverage. If you are unsure how to count your employees, consult the IRS or an attorney.

What happens to my employees if I decide not to offer health coverage?

If you decide not to offer health coverage, your employees and their families will be able to purchase coverage through Vermont Health Connect. If they need help doing so, they can use the Vermont-based call center or certified Navigators. Employees in most Vermont households that use Vermont Health Connect (those with incomes up to 400 percent of the federal poverty level or $94,200 for a family of four) will be eligible for premium tax credits and/or cost-sharing subsidies to help pay for out-of-pocket costs. These two forms of financial assistance are not available to Vermonters in employer-sponsored plans.