What have been the major changes in health care reform since this time last year?
Paul H. Malesick
Attorney at Law
Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A.
>> Malesick: In the past 12 months, the (Barack) Obama administration instituted more delays ahead of an anticipated Jan. 1, 2015, complete implementation. In February 2014, the employer mandate (otherwise known as the “shared responsibility payment”) was delayed for employers with 50 to 99 full-time employees or full-time equivalents until Jan. 1, 2016.
For employers with greater than 99 employees, beginning on Jan. 1, 2015, they must offer adequate and affordable coverage to 70 percent of their full-time employees and equivalents and 95 percent of these employees by Jan. 1, 2016.
What are businesses finding most difficult about complying with the ACA?
Kevin Cavalier
Vice President, Sales
SummaCare
>> Cavalier: The biggest difficulty for employers is fully understanding, from a regulatory perspective, what rules and mandates apply to their specific business size. The ACA affects employers dramatically different based upon the size of the company. Additionally, there have been numerous changes in the provisions of the ACA pursuant to transitional relief (keep your old plan) and coverage mandates for individuals and employer groups. Educational resources for individuals and employers are abundant, utilizing insurance brokers and consultants, as well as insurance carriers, to better understand the impact of the ACA and what it might mean for a specific employer or individual.
Kim Flett, CPA, QPA, QKA
Director, Retirement Plan Design and Administration
SS&G
>> Flett: In anticipation of the upcoming employer mandates, many employers subject to the requirement are analyzing the potential impact of paying the penalty or accepting the increase in health insurance premiums. Increasingly, employers who offer insurance are market shopping to get the best cost as premiums increase significantly in many markets. Some employers are stopping coverage altogether and increasing compensation of employees to allow them to purchase individual insurance on the federal exchange.
Employers are exploring tax-free ways of providing funds to employees to purchase insurance on the exchange. However, this type of option is available only on a post-tax basis or the coverage is deemed not to meet the ACA requirements according to IRS regulations. Many companies are determining the appropriate method to identify seasonal and varied hour employees and are looking at payroll providers and other software vendors for assistance.
