# Start Planning Your Health Coverage Before You Have 50 Employees
The Affordable Care Act's employer mandate kicks in once your company reaches 50 full-time employees. While this milestone often signals healthy business growth, it also brings significant new responsibilities and costs that smart business owners should prepare for well in advance.
Rather than scrambling to meet compliance requirements at the last minute or getting locked into an expensive plan, take time now to develop a strategic approach to employee health coverage. Here are three essential questions to guide your planning:
## Do You Really Need 50 Employees or More?
Growth feels good, but it's worth evaluating whether your business is expanding too quickly or in the right direction. Adding to your workforce represents a substantial investment, especially when crossing the threshold that triggers mandatory health coverage.
Before posting new job listings, consider whether automated software solutions or freelance contractors could help you achieve your growth objectives without the added complexity of ACA compliance. These alternatives might provide the capacity you need while keeping your full-time employee count below 50.
## What Type of Plan Works Best for Your Team?
If you determine that growing beyond 50 full-time equivalent (FTE) employees is necessary for your business, start researching coverage options early. The range of qualifying plans is broader than many business owners realize.
**Traditional Options:** - High Deductible Health Plans (HDHPs) paired with Health Savings Accounts (HSAs) - Preferred Provider Organizations (PPOs) with Flexible Spending Accounts (FSAs) - Comprehensive benefits packages that attract experienced professionals
**Cost-Control Alternative:** Health Reimbursement Arrangements (HRAs) offer an interesting middle ground. Instead of paying for most of a standard plan's costs, you reimburse employees for qualified medical expenses up to a predetermined cap. This approach gives you more predictable budget control while still providing valuable coverage.
## How Can You Ensure Compliance and Smart Decisions?
Navigating ACA requirements while balancing costs and employee needs requires expertise. Unless your company is large enough to support a dedicated HR team, partnering with a third-party HR management service or consultant makes sense.
These professionals can help you: - Stay compliant with ACA mandates - Avoid costly penalties - Structure coverage that supports your employees without overwhelming your budget - Navigate other regulatory requirements that may apply to your expanding business
## The Bottom Line
Planning ahead gives you options. Whether your company is currently experiencing growth or you're actively working to stimulate expansion, addressing health coverage requirements early puts you in control of both costs and compliance.
Taking a strategic approach to this challenge allows you to focus on what matters most: growing your business while taking care of your team.
