Posted on July 24, 2013

Getting Prepared for Health Care Reform: What You Need to Comply

Recent delays to the implementation of the Patient Protection and Affordable Care Act, or PPACA, have many employers feeling relieved. Still, there is some confusion about what has been delayed and the impact on employers:

What rules are delayed?

According to announcements from the US Treasury Department, there are three components of PPACA that were delayed:

  1. Employer shared responsibility
    The employer shared responsibility provision, also referred to as “pay or play,” is delayed until January 1, 2015 for employers with 100 or more full-time employees and until January 1, 2016 for employers with 50-99 full-time employees, according to the Treasury Department's press release. This means employers who do not comply with this provision will not have to pay the $2,000 or $3,000 per employee fine for non-compliance until 2015.

#2 Employer reporting requirements
Certain reporting requirements, known as the 6055 and 6056 reports, are also delayed. Insurers, self-insuring employers, some health care providers and some other employers will be required to complete these reports in early 2016 based on data captured in 2015.

#3 Income and health insurance status validation at exchanges
The requirement that state and federal health insurance exchanges (marketplaces) verify consumers’ income and health insurance status before or after they provide coverage subsidies are delayed until January 1, 2015.

What rules are still in effect?

All taxes, fees, mandates, requirements and regulations that were originally slated for 2013 and 2014 are still in effect. Although it is possible that other parts of the law will be delayed in the future, it is best to move forward under the assumption that they will not.

So I can’t just sit back and relax?

Unfortunately, no. Employer shared responsibility is a complex requirement that necessitates a great deal of analysis and planning on the part of employers. It’s critical for you to be thinking strategically about your compliance now.

The coverage and reporting requirements for 2015 will be based on employee hours worked in 2014. This means you must be tracking employee hours in 2014 in order to comply in 2015. Putting a time tracking system in place before January 2014 would be a good idea.

What will I need to comply?

Paycor’s Health Care Suite provides you with the tools you will need to prepare for PPACA compliance.

The Health Care Suite includes:

* Time and attendance management, for the all-important tracking of employee hours
* Reporting and decision-making support, to help you determine whether you qualify as a large employer, which employees you need to offer coverage to and whether that coverage qualifies as “affordable”
* HR tools and resources to help you stay informed about changes and too connect you with HR professionals to get your questions answered

Learn more about how Paycor’s Health Care Suite can help you make the most of the delay and be ready for employer shared responsibility when it takes effect.

Where can I find out more about the changes to PPACA?

*Health Care Reform Expert Tom Wagoner frequently partners with Paycor to present webinars about the ACA and how to prepare your organization. View our webinar schedule here.

Sources: US Department of the Treasury, The Washington Post, Accelerated Benefits

This content is for educational purposes only and should not be considered legal advice.