Affordable Care Act Q&A
The healthcare reform law (Affordable Care Act) has more than its share of confusion. With our special payroll system capabilities and expertise, we can help you navigate through the requirements to support profitable growth for your business. Here are some common questions we hear from small and medium-sized businesses:
Q. What are some of the challenges of the Affordable Care Act for a small business?
A. We see double digit increases in small group health premiums, compliance requirements, IRS reporting, employee notifications and penalties as issues that need to be addressed.
Q. I’m an under-50 employer. Do I need to be concerned?
A. There are significant legal, economic and tax implications. Small businesses will feel the brunt of many new taxes ranging from a new medical device tax to insurers excise tax … and the list goes on. We expect a 3-4 percent annual increase in costs just from those factors.
Q. What is a Community Rating?
A. There is a totally new way to determine health insurance premiums for small groups that pools covered employees in each local geographical area. No matter if your employees are healthy or have medical issues, pricing will be the same. How does that change affect your business and your employees?
Q. I have heard there are new payroll reporting requirements and obligations associated with the Affordable Care Act. Is that true?
A. Yes. Our special payroll system at AdminResources will automatically generate required reports and tracking.
Q. With changes coming in the balance of power and the presidential election just a couple years off, why don’t I just wait for them to repeal the healthcare reform law?
A. Our opinion is that repeal is not a realistic option to anticipate under any political scenario. You may notice that the word “repeal” is slowly drifting away from stump speeches. It was once a great political talking point – not much more. One thing for sure is that there will be changes and clarifications over the next few years. AdminResources will stay in front of all the changes to cover your back. We’re here to help.
Due to our large pool of clients, AdminResources is able to provide affordable, Fortune 500 health insurance and other employee benefits normally not available to smaller businesses. For a free evaluation of your company’s health care insurance needs, call 800-753-6939 today.