Under the current implementation timeline for healthcare reform, companies with 50 or more full time or full time equivalent employees are required to offer health benefits by Jan. 1, 2015 or pay a penalty.
The ASC ownership structure has an impact on how the government will tally employees.
"Control Group analyses, similar to those currently performed for purposes of eligibility for pension/401k plans, must be performed for ASCs with less than 50 FT and FTE employees. There is one critical difference, however," says Tom Jacobs, CEO and co-founder of MedHQ. "This analysis might need to be performed every month for groups that hover close to the 50 FT/FTE mark. ASCs with solely physician investors might need to add staff directly employed by the center to the total employed by a physician practice, if that practice (or owners of the practice) are 80 percent owners of the ASC; ASCs with corporate or hospital owners may also need to include those employees, making the ASC a part of an applicable large employer. The ASC will not be required to be on the other entities' health plans; but it must nevertheless offer a qualified health plan to avoid additional taxation (penalties)."
This could have an impact on several ambulatory surgery centers.
"It could be likely that a physician group that owns 80 percent of the ASC with 30 employees is well below the 50 employee mark, but since the surgery center is owned by another group as well, the two combined my exceed the large employer limit," says Mr. Jacobs. "You have to have a thorough analysis of what the group looks like and apply the control group analysis rules to know whether any of the combinations will make the ASC an applicable large employer."
Learn more by reading "ASC Owners & Operators: 4 Things to Know About Large Employer Health Benefits (Even if You Think You're Not a Large Employer)."
More Articles on Surgery Centers:
Healthcare Market Changes: What Indicates Trouble for ASCs?
7 Financial Warning Signs to Know Your ASC is In Trouble
The Brave New World of Healthcare: What Does the ASC Landscape Look Like?
The ASC ownership structure has an impact on how the government will tally employees.
"Control Group analyses, similar to those currently performed for purposes of eligibility for pension/401k plans, must be performed for ASCs with less than 50 FT and FTE employees. There is one critical difference, however," says Tom Jacobs, CEO and co-founder of MedHQ. "This analysis might need to be performed every month for groups that hover close to the 50 FT/FTE mark. ASCs with solely physician investors might need to add staff directly employed by the center to the total employed by a physician practice, if that practice (or owners of the practice) are 80 percent owners of the ASC; ASCs with corporate or hospital owners may also need to include those employees, making the ASC a part of an applicable large employer. The ASC will not be required to be on the other entities' health plans; but it must nevertheless offer a qualified health plan to avoid additional taxation (penalties)."
This could have an impact on several ambulatory surgery centers.
"It could be likely that a physician group that owns 80 percent of the ASC with 30 employees is well below the 50 employee mark, but since the surgery center is owned by another group as well, the two combined my exceed the large employer limit," says Mr. Jacobs. "You have to have a thorough analysis of what the group looks like and apply the control group analysis rules to know whether any of the combinations will make the ASC an applicable large employer."
Learn more by reading "ASC Owners & Operators: 4 Things to Know About Large Employer Health Benefits (Even if You Think You're Not a Large Employer)."
More Articles on Surgery Centers:
Healthcare Market Changes: What Indicates Trouble for ASCs?
7 Financial Warning Signs to Know Your ASC is In Trouble
The Brave New World of Healthcare: What Does the ASC Landscape Look Like?