Late 2015 saw so much legislative and regulatory change to the Affordable Care Act (ACA) that it was difficult to keep up with it all. Heading into 2016, it’s important for employers to understand what has already happened, what the ACA means today and to watch how it evolves in the coming year.
Several sections of the ACA have been repealed since the first version, giving employers some time and space to regroup and game plan a little more.
The repeal of these provisions that were seen as overly burdensome on business and employers is a relief to many businesses, but the Congressional Budget Office (CBO) sees it differently. According to the CBO, it will mean hundreds of thousands of workers will go without the safety net of insurance.
A couple key aspects of the ACA were delayed, but not repealed.
Although sections 125 and 105(h) nondiscrimination rules are intact, the nondiscrimination rules prohibiting discrimination in favor of highly compensated individuals that were supposed to be applied to fully-insured group health plans were delayed indefinitely. That means that for now, employers may still be able to offer better plans to highly compensated individuals in some cases.
The controversial Cadillac tax that was set to take effect in 2018 has been delayed until 2020. It was a 40% excise tax on employer-sponsored health plans with really “rich” benefits. Industry insiders predict that it’s highly likely the Cadillac tax will be repealed altogether before 2020, but that remains to be seen. Employers that have implemented a mitigation strategy may have to switch gears if the Cadillac tax gets permanently axed.
Employers have plenty of ACA issues to deal with in 2016, including the following:
The ongoing evolution of the ACA means employers have to focus closer attention on their plans than ever before. Understanding their workforce numbers, staying on top of all the moving parts of the ACA, and close coordination between internal facilitators, insurers and third party administrators is essential.
PAYDAY staff and HR partners are expertly prepared to provide ACA support, education, and information to help you understand and manage ACA reporting and compliance issues. You can rely on us to keep you on track with status updates and changes to ACA as they apply to your business, and we can assist you with fulfilling reporting requirements.
PAYDAY Workforce Solutions provides a single database SAAS solution for Human Capital Management (HCM) including payroll, human resources, time management, benefits administration and onboarding to companies of all sizes and in various industries.
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