Affordable Care Act Consulting
An effective Affordable Care Act strategy for tomorrow begins with knowing where you stand today.
Businesses with 100 or more full-time employees (or the part time equivalent) are subject to the shared responsibility payments for failure to comply with the Affordable Care Act (ACA). Under the law, these employers must provide affordable health insurance that meets the minimum value or be subject to penalties. Employers with 50 or more full-time employees are subject to penalties beginning January 1, 2016.
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To prepare for these impending deadlines, employers must:
- Track hours of service
- Determine whether they are a large employer subject to the law
- Identify which full-time employees can trigger a penalty
- Understand the consequences of not offering basic coverage to full-time employees
- Consider whether to offer affordable, minimum value coverage
- Determine whether to “pay or play”
- Evaluate eligibility for transition relief
- Report required information to the IRS
The scope of these activities will likely require the engagement of a multi-disciplinary team drawing on internal and external resources. Do you have the proper team assembled to answer these questions for your company and effectively determine your ACA strategy? If your answer to this questions is “no”, or “maybe”, or “I don’t know”, then the time has come to take immediate action.
Health insurance companies will tell you that you must provide health insurance to your full time employees. However, this might not be your best option. Our Health Care Implementation Team can assess the impact of the employer shared responsibility (“pay or play”) rules and model various alternative scenarios for employer provided health benefits. With this service, we can help you:
- Determine the number of full-time employees
- Determine whether you are an “applicable large employer” subject to employer shared responsibility requirements
- Determine the impact of the employer shared responsibility (“pay or play”) requirements over multiple years
- Assess the impact of adding or dropping employees
- Assess the impact of increasing or decreasing employee contributions to the cost of coverage
- Assess the impact of converting employees from full-time to part-time status
- Determine a strategy for defining Measurement, Administrative, and Stability Periods within the requirements of the ACA for purposes of ongoing ACA compliance and reporting
- Evaluate the “affordability” of health care coverage
- Help you better understand the relevant requirements of the ACA, remain compliant, and minimize taxes and penalties.
Isn’t it time that your business prepare for the Affordable Care Act?