Complications with ACA

9 Oct

There are no easy choices when it comes to ACA.

The Affordable Care Act will become more important to companies with over 100 employees because January 1, 2015 is the deadline for those businesses to begin offering health insurance to its workers. According to MSN News, the exact requirement is that at least 70 percent of full-time staffers must be offered health insurance by 2015. Additionally, the insurance plan must not exceed over 9.5 percent of employees' annual salaries.

According to Andy Birol, a small-business consultant, companies shouldn't overthink their policies to the extent it inhibits them from making other business decisions. He terms his strategy for ACA as "fish or cut bait," meaning to either get into the game or get out of it – to make a decision quickly and stick to it.

Some companies are actually reducing their headcount of full-time employees to avoid paying the for insurance coverage.

More complications to complying with ACA
There are some additional challenges to the ACA that many people in the human resource planning field are not aware of, but a recent article by HR Morning pinpoints some of the most salient points to be concerned about when it comes to this important matter.

For one thing, adding a wellness program is a great way to get employees healthy and focused on getting into good shape. However, giving incentives to those who sign up for it can be a problem, along with adding penalties for people who smoke or are overweight. For example, the ACA maximum reduction or penalty is 30 percent, according to HR Morning. For smokers, it rises to 50 percent. Anything more than that is a violation.

Another problem is with "grandfathered" programs, which are old enough to become exempt from major health care rules. However, if a grandfathered program changes enough than it will no longer be protected under the same status.

The government has put out a list of information about this on a special ACA website.

Waiting periods are another complex issue. Health care plans cannot make employees wait more than 90 days for coverage to begin, but many covered employees are facing longer waiting periods, putting their employers in jeopardy of facing ACA penalties.

How affordable is the insurance?
Some employees are turning down ACA insurance because they can't afford it. According to Tara Wicker, the HR director for a chain of grocery stores, many of her employees choosing against insurance because they can't pay the premiums. People who want to keep their workers insured and healthy may want to look carefully for an affordable plan that compromises between what employees and employers can both afford.

Other people believe that employees should be allowed to have no insurance if that's what they want.

"The employer is responsible for offering the insurance, not responsible for ensuring that employees actually enroll," said Tony Novak, a benefits consultant.

The official rules are that if the employer offers minimal coverage, there is no penalty if employees don't take it. Jon Robitaille, who works for a grocery store, says that he signed up for the insurance plan because he felt it was mandated, but said he would have preferred to spend the money on vacations instead.

Other complications include the fact that workers must work for 30 hours a week in order to be eligible for a plan, and maybe people who work more than one job have trouble meeting the requirements even if they work more than 30 hours when both jobs are combined.

Smaller businesses won't have to worry about the ACA rules until 2016. That's when companies with between 50 and 99 employees must begin providing health insurance. Those with less than 50 don't have to comply with the rules.

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