WorldWide Drilling Resource

Drilling Into Money Not Boring by Mark E. Battersby The ACA After the Failed AHCA The attempt to repeal and replace the Affordable Care Act (ACA) “Obamacare” with the American Health Care Act (AHCA) failed. Since everyone must have basic health insurance which meets the gov- ernment’s standards, and larger drilling operations and businesses are required to provide their workers with the coverage, it means, fortunately or unfortunately, the ACA remains, warts and all, the law of the land for the foreseeable future. The ACA continues to offer drilling professionals and their businesses a number of options. Coping with the basic requirement that every individual have health insurance, is the “Individual Mandate”. Today, the ACA’s Individual Mandate requires previously uninsured independent contractors and business owners to pur- chase insurance or face annual penalties. The penalty for individuals who fail to obtain health insurance is equal to the larger of 2.5% of household income or $695 per adult ($347 per child under 18), up to a $2085 maximum. Much of the ACA’s negative impact stemmed from the so-called “Employer Mandate” requiring businesses with over 50 full-time equivalent (FTE) employees to provide health coverage to ful l-time workers. The penalty equals $2260 di- vided by 12 for each month an employer fails to provide coverage, multiplied by the number of eligible employees (minus the first 30 employees). In simple terms, FTE equals the total number of full-time employees plus the combined number of part-time employee hours divided by 30. Seasonal employees, contractors, and business owners generally don’t count toward the total. The ACA continues to offer small businesses affordable insurance options, cost assistance, and increased buying power via the Small Business Health Options Program (SHOP). Small busi- nesses employing fewer than 50, can use SHOP to get better deals on em- ployee insurance, but aren’t required to do so. The plans offered on the state ex- changes are classified in four primary tiers: Bronze, Silver, Gold, and Platinum, with higher premiums and better cover- age as the levels ascend. The ACA of- fers a tax credit for so-called “lower wage” small businesses which purchase insurance coverage through SHOP. Small businesses which provide health- care coverage can see up to a 50% re- duction in their share of the cost. With talk of further attempts to re- peal and/or replace the Affordable Care Act, keeping abreast of its many benefits and potential pitfalls is more important today than ever. It is, however, the sky- rocketing cost of health care which makes professional guidance a necessity for every drilling business - and its owners. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com 43 WorldWide Drilling Resource ® JUNE 2017