Employers Becoming PPACA Compliance Officers

With the ever-changing healthcare landscape, employers have had to take on a greater role when it comes to Patient Protection and Affordable Care Act (PPACA) compliance. Various government departments including the Department of Labor, Health and Human Services, and the Internal Revenue Service are actively tracking small and mid-sized businesses for numerous compliance issues. These include PPACA reporting, wage and hour miscalculations, and more. Human Resource (HR) managers have a full-time job on their hands ensuring their company is PPACA compliant.

Many employers are familiar with PPACA’s requirements, but they do not understand their function. For employers, these requirements are boxes that need checking. What concerns business owners more is finding good health insurance that does not break the bank. They also want their plan to be PPACA compliant to avoid fines for implementing their health care offerings incorrectly. Meanwhile, employees need insurance to avoid penalties come tax season as well as for their own health.

These fines and penalties are a serious matter, especially since the IRS increased them in 2016. The increase for employees is:

  • $695 or 2.5% of income per uninsured adult, whichever is more

While the increases for employers include:

  • $2160 per employee if the employer fails to provide insurance or provides a non-compliant plan
  • $3240 per staff member using a subsidy through the marketplace
  • $1100 per day if the employer is late filing tax forms and documents

Now more than ever, employers need knowledgeable counsel to ensure PPACA compliance. Otherwise, they could be facing thousands of dollars in fees. To learn more about PPACA compliance, contact the experts at Chelten Consulting.

GAP Insurance Growing in Popularity

shutterstock_174966584 - CopyGroup Supplemental Health (GAP) plans can help fill in the holes of high-deductible health plans (HDHPs). GAP insurance plans do not qualify under the Affordable Care Act (ACA) on their own. However, when combined with an HDHP that is ACA compliant they can help control costs. They are rising in popularity because HDHPs are often too expensive for not enough health coverage.

For example, many ACA compliant insurance plans have high deductibles averaging around $3000. Many individuals do not feel comfortable or are not capable of meeting that cost. Approximately 80% of people qualify for a subsidy under the Affordable Care Act to help mitigate the costs, but that leaves 20% of individuals who have to pay that cost out of pocket. Businesses must also handle these expenses on their own. As a result, businesses either raise deductibles to keep costs down or increase their employees’ out-of-pocket cost.

This is where GAP plans become a major player. GAP plans can provide coverage where HDHPs fall short or help pay deductible costs. GAP plans appeal to businesses in particular because it allows them to offer health insurance packages that ultimately cost less than if they only offered expensive plans with lower deductibles.

GAP plans also allow employees to customize their health insurance to meet their particular needs. Many employees view health insurance customization as a benefit, so GAP plans can help improve employee loyalty as well. To learn more about controlling insurance costs while improving employee health plan satisfaction, contact Chelten Consulting.