Holding Area
Powered by Squarespace

Entries in Health Care Refrom (3)

Wednesday
Jun262013

PEOs Help With Health Care Reform and the ACA.

Affordable Care Creates Demand for HR Outsourcing & PEOs

There is no question that  the (PPACA) Patient Protection and Affordable Care Act and Healthcare Reform has created the greatest opportunity for the PEO industry in decades. Employee leasing companies, HR outsourcing firms, benefits administration and health insurance enrollment specialists are ramping up to assist small and mid sized business owners and non profit organizations with implementing the Affordable Care Act, and complying with all the new rules and regulations.

Costs - Credits - Penalties - New Reporting For All

The complexities and costs associated with the Patient Protection and Affordable Care Act can be too overwhelming for the average small and mid-sized companies. Under health care reform, all group health plans are required to provide a minimum level of coverage for medical expenses. This could mean higher premiums for plans providing richer coverage than before. Limited benefit and high deductible health plans will not qualify under the PPACA.

Small business owners, described as 25 employees or less, can qualify for a premium tax credit. The credits are calculated based on the number of employees, average wage base, and the premiums paid by the employer to cover their staff and workers. Low wage paying employers with 15 employees or less, can expect to qualify for a credit of up to 50% of their premiums.

See Tax Credits - Do We Qualify?

The Affordable Care Act requires employers with 50 full-time employees or more (based on 30 hours per week and over) to provide affordable health insurance coverage for their employees or pay a $2,000 penalty per full time employee, excluding the first 30. This is often referred to as “play or pay” by individuals and representatives of the health insurance industry. Businesses and organizations who employ workers at the legal threshold should make certain they are in compliance at all times. The law requires a formula that measures the hours of full and part time workers to determine the total number of full time equivalent workers that an organization employs.

Larger employers must make certain that low wage employees do not contribute more than 9.5% of their earnings for their coverage. In addition to testing for full time workers,there are additional considerations for seasonal and short term workers. This can making testing especially complicated for construction, farming, health care, hotels and restaurants, landscaping, maintenance, schools, and the staffing industry. Under the PPACA, the IRS has instituted new regulations for reporting employer paid contributions for health insurance benefits that affects companies of all sizes.

PEOs - Health Reform’s Best Kept Secret

Employee leasing, personnel management, and Professional Employer Organizations are uniquely qualified to provide the solution. PEO’s provide companies with a comprehensive integrated solution that entails the administration and processing of payroll, they calculate and submit payroll taxes accurately and on time, and submit all payroll reports with the required information to your local, state and federal agencies making certain that your organization is in full compliance.

     “The PEO Industry is in the best position to tackle all the complexities of administering and complying with the Affordable Care Act and Health Care Reform.”

“The trouble is that I don’t hear enough employee leasing companies and professional employer organizations telling the business community exactly what it is that PEOs do, how we can relieve them of problems of dealing with health care reform, and help them stay focused on running their business.”

Rod Diekema - PEO Network

Some larger professional employers offer a choice of health insurance plans that have been tested to assure compliance with the PPACA. Many PEO’s can assist larger companies with testing for determining full time equivalents and contribution strategies to attain “safe harbor” status to avoid facing a $3,000 contribution penalty, should an employee obtain coverage in the public exchange instead of opting for the company’s group health plan. 

Inspirity - Getting The Message Out

 

     “Health care reform has generated over 15,000 pages of regulations filled with increased complexities, compliance and cost for your business. You can spend the time and money to figure it out, or you can  …..”

Paul Sarvardi - CEO Inspirity

Health Care Reform Video

Complying with health care reform will affect every employer in some way. Depending on the size and structure of an organization’s workforce, the remedies and requirements may be unique to your organization, even in the same industry. This is why the administrative capabilities, benefits expertise, human resource information technology, and payroll systems of HR Outsourcing and Professional Employer Organizations can be invaluable today, and in the future.

Saturday
May182013

PEO.com on Health Care Reform

Are Employers and PEOs Ready For Health Care Reform?

 Our friends at PEO.com make an interesting point about health care reform. Everyday, employers who are searching for employee leasing or trying to find a professional employer organization rely on PEO.com to locate an HR outsourcing provider. Rod Diekema, the founder of PEO.com, is an industry veteran who speaks with small and midsize business owners across the country daily. This gives him a unique prospective on what is going on in the business community. 

“The number one issue today is health care reform” he told me in a conversation last week. “Employers are just waking up to all the additional responsiblities, compliance and reporting that will be required. The regulations are complicated for sure”. After our discussion, Rod wasted no time in writing about his experience and suggestions in his blog on PEO.com.

Click on this link to his blog post entitled “Health Care Confusion Making You Crazy”.

Hope you enjoy it.

Monday
Jul232012

Health Care Reform - Is Your Company Ready?

The waiting is finally over, and the Supreme Court of the United States has ruled that the individual mandate and the Patient Protection and Affordable Health Care Act is legal under the constitution.

This ruling came as a big suprise to many. Despite an early warning in our blog entitled “Want to Repeal Health Insurance Reform … Not Likely”. The majority of employee leasing companies, professional employer organizations, and small and midsized employers are just starting to learn all the aspects of the law, and understand how it pertains to their particular situation.

Kathyrn Mayer, a staff writer for BenefitsPro, www.benefitspro.com has written an excellent article to guide you through some of the changes. She quotes employee benefits specialist, Tony Tilelli, who works with the Sihle Insurance Group.

• Be aware that states currently making no attempt to implement the state exchange will get a plan administered by the federal government.

• Businesses with 50 or more employees cannot fall into the trap of thinking that on Dec. 31, 2013, they can just reduce their employee roster to 49 FTE (full time equivalent). The IRS will be watching.

• Review your health plan documents. You should have a binder containing all of the information you need to legally administer your health benefits plan, and you should thoroughly review that data to guide you in the steps you now need to take.

• Be ready for health plan audits. They will become more popular under the new law.

• Beginning in 2013, depending on the size of your group, you will be required to report the value of your employee’s health plan premium on their W2s.

• You must have your benefits summaries in all of the languages spoken by your employees. This means that if you have employees whose first language is not English, you need to provide a benefit summary in their primary language.

• Be careful of what is called work force realignment. In the past, employers have attempted to skirt compliance by reducing the hours of some illness-prone employees to part-time status. Downsizing to avoid providing benefits is a violation of the Employee Retirement Income Security Act (ERISA).

• Review the cost of your health plan. Make sure you have a health plan that does not cost your employee more than 9.5 percent of his or her income.

This is only a small portion of what to expect to come from health care insurance reform. Stay tuned for more information in the weeks to follow. As always, your comments are welcome.