Health care law compliance complex for employers
By Chris Fleisher, The Pittsburgh Tribune-Review | |
McClatchy-Tribune Information Services |
"We think it's important for our team members to have health care," said Bolden, who oversees human resources at the
Whether to offer insurance isn't the biggest issue for many large employers as they prepare for the health care law's employer mandate. Beginning
Most large companies already offer coverage as a benefit to attract the best workers -- and say they will continue. For some, the cost of providing coverage is an added burden. But what's vexing for many are the requirements for ensuring that they comply with the law.
"The record keeping is a bit of a nightmare," said
Burdensome calculations
The requirement that companies with more than 100 full-time workers provide insurance coverage isn't simple.
Companies must count the hours of seasonal and part-time workers to see how the law applies to them. For example, a company with 90 full-timers will have to offer coverage to those workers if the number of hours worked by part-timers is the equivalent of 10 full-time employees. Separate companies, no matter how small, would have to offer coverage if they have shared ownership and their combined staffs add up to the equivalent of more than 100 full-time employees.
Many see the calculations as burdensome -- especially industries that rely on part-timers and seasonal workers. They will have to "look back" and report their staffing and employee hours each year to the
"Especially in a retail setting, it's going to be a huge task," said
"It's an unbelievably complicated formula."
Companies say health benefits are important to recruiting and retaining staff. A majority of companies in a survey by the
Preemptive action
But some companies have taken preemptive steps because of concerns about the cost of complying with the law.
To avoid responsibility for providing health insurance coverage or to curtail costs, other employers are reducing employee hours to less than 30, shifting low-wage workers to
Mad Mex restaurant chain, which has seven locations in
"We've really pushed people to go one way or the other," said
Mandate delayed
The time that benefits managers have spent understanding the law has been immense, said
The mandate was originally scheduled for this year, but employer concerns over meeting the reporting standards led the Obama administration to push the deadline back to 2015. Mid-sized companies with 50 to 100 full-time workers have until 2016, but must still track the hours and level of coverage for eligible employees before then.
MarcUSA, an advertising agency in
"My remaining concerns are just the reporting issues and what we need to do to get that infrastructure in place," Kealey said.
No one expects reporting systems to be completely smooth when January comes, said Warford, of
"Even though there's some uncertainty around the reporting, it's do the best you can," Warford said.
Cadillac tax
Companies have relied on insurance brokers or benefits consultants to help them prepare. The biggest concern for Maras, at
Meadville offers health insurance that is considered "too rich" by the law's standards. That means the hospital will have to pay an excise tax, commonly known as the "Cadillac tax," in 2018.
The tax is imposed on the value of health insurance benefits exceeding a certain threshold -- estimated at
Meadville's insurance, which has no deductible, would be considered a Cadillac plan, subjecting the hospital to a tax of more than
"The bottom line is that we're being penalized," Maras said. "We've been able to keep our costs down. And it's because we're doing everything right, and now we're going to be penalized."
There's a lot that could change before 2018, especially with a presidential election in 2016. But smart companies are preparing.
"You can't put your head in the sand," Warford said. "You have to plan for it."
___
(c)2014 The Pittsburgh Tribune-Review (Greensburg, Pa.)
Visit The Pittsburgh Tribune-Review (Greensburg, Pa.) at www.triblive.com
Distributed by MCT Information Services
Wordcount: | 1018 |
Rebuilding lives
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News