1. What is PPACAcalc?
PPACAcalc is a web based tool designed for insurance brokers
PPACAcalc provides a customized employer impact study that will quantify the impact of PPACA in 2014 and 2018 for an employer group
The application was designed by credentialed health actuaries at Verisight
Applicable for fully insured or self insured group health insurance plans
Webcast Demonstration of PPACAcalc

2. Summary of PPACAcalc’s Modeling Capabilities - 2014
Using actual employer premium rates, employee contribution rates, and census data the application projects employee migration in 2014 related to PPACA and the associated cost impact
Enrolled employees who migrate to state exchange
Waiving employees who elect coverage with the employer plan or the state exchange
Newly eligible employees who elect coverage with the employer plan or the state exchange
PPACAcalc models the following three scenarios and the associated cost impact:
Employer makes no changes to its current benefit plan designs in 2014
Employer terminates its group medical plan in 2014
Employer offers only a 60% actuarial value plan in 2014
Webcast Demonstration of PPACAcalc

3. Drilldown on PPACAcalc Assumptions & Methods
PPACAcalc models how the employer’s covered and uncovered population will migrate in 2014 once the state exchanges become operational:
Enrolled employees may stay on the employer’s plan or migrate to the state exchange
Waiving employees could join the employer plan, purchase a state exchange plan, or continue to waive due to the presence of other coverage
Currently ineligible employees might join the employer plan if they gain eligibility in 2014
The general rule in modeling migration is that if the employer plan is projected to cost the employee more than 9.5% of household income, the employee is assumed to migrate to the state exchange
PPACAcalc’s financial projections include the income tax and FICA tax impact on the employer to present the full financial impact of PPACA.
Employer penalties are quantified
Certain important assumptions are designated by the user, which allows greater modeling flexibility:
Household Income Factor
Wage Inflation
Employer Marginal Tax Rate
Seriatim calculation, which means that all calculations are performed at the employee level and summarized for the group
Webcast Demonstration of PPACAcalc

4. Summary of PPACAcalc’s Modeling Capabilities - 2018
PPACAcalc projects an employer’s exposure to excise taxes in 2018
Projection is calculated on a plan by plan basis
PPACAcalc provides reporting by plan design so an employer can dill down on the specific source of an excise tax liability
Sample 2014 and 2018 reports are available on our PPACAcalc product page:
Webcast Demonstration of PPACAcalc

5. Soon To Be Released Enhancements
Refinement with respect to seasonal employees
Flexibility to adjust medical trend assumptions
Migration with respect to new eligibility for Medicaid
Flexibility with respect to employer salary adjustments
Ability to make claim morbidity adjustment in 2014