Employers Struggle With Maze Of ACA Rules
By AMY SISK, The Bismarck Tribune |
Workers could get coverage for a decent price — as little as
But the insurance he offered did not meet the requirements of the Affordable Care Act, so Sotebeer had to change course.
He recently sent a letter to 160 employees he deemed eligible for a new plan that meets the rules of the law's employer mandate provision.
"There are probably a little less than 30 people who have sent back and said they want it," Sotebeer told
"That's a lot less than I expected."
High premiums are likely to blame for the lack of sign-ups, Sotebeer said. An employee making
Sotebeer is not the only one trying to make sense of the employer mandate before the first round of penalties hits.
"It's the most confusing thing we have ever had to enact," Sotebeer said.
Before President
The management at
"We just dropped it and waited until the health care law was passed," said
The mandate generally requires employers with more than 100 employees to offer insurance to at least 70 percent in 2015 or pay a fine. The next year, employers with more than 50 workers must offer coverage to at least 95 percent of those people.
People familiar with the law say the number of businesses that will need to add insurance or pay a fine is not terribly high in
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"We have seen the vast majority of employers offer coverage partly because we are a state starving for employees to work," said
Manson said companies that did not previously offer insurance are unlikely to start.
"They're probably looking at the penalty route as a cheaper cost for them," he said.
He estimated a business would need to contribute at least
The cost to employers adds up to significantly more than the
Sotebeer said it would be cheaper for him to stop offering insurance in 2015 and pay the penalty, but that seemed like the wrong choice for his employees.
"If they have insurance with me, I think they're more apt to stay with me," he said.
Before the employer mandate took effect, some people speculated businesses would skirt the rules by cutting the number of hours their employees worked.
The mandate requires employers to offer coverage to employees who work at least 30 hours per week.
Manson said he has heard of some people whose hours have been reduced as a result of the mandate, but that practice is not widespread.
It tends to happen in the service industry, where some people who used to work 28 to 34 hours per week are now limited to 30, he said.
"I wouldn't say a lot of businesses with people with full-time status drop hours to get below the 30-hour threshold," he said.
A bill passed the
Sotebeer said he prefers lawmakers keep the trigger at 30 hours because insurance offers an extra incentive for employees who work between 30 to 40 hours per week to stay.
Manson suggested a better threshold would fall in the middle. A fair amount of workers could see their hours cut below 40 if the bill were to become law, he said.
As businesses navigate the complexities of the employer mandate, some report an increased administrative burden.
"I had a part-time person that was doing just payroll," Sotebeer said. "Now, we'll have to give that person additional hours."
Employers have to report information to the
Manson said companies need to get on top of monitoring that information so they don't have to scramble when it comes time to report to the
Fettig said his partner at Dakota Staffing Solutions recently suggested hiring another person to help wade through the task.
He estimated that businesses offering coverage for the first time could see their operating costs rise as much as 15 percent between having to pay premiums and keeping up on the administrative end.
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Source: | Associated Press |
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