The Patient Protection Affordable Care Act (PPACA), otherwise known as Obamacare, January 1, 2014 effective date will be here sooner than you think. The stress of this impending law is compounded by its complicated nature – it has many mandates and provisions that depend on employer size, affordability, minimum essential coverage, minimum value coverage and many other factors.
Additionally, although the mandates and provisions of the law have been upheld by the Supreme Court, many details regarding the implementation of law are unclear and yet to be defined. Mandated timelines of implementation of the new healthcare requirements, procedures, reporting requirements, fees, fines, penalties, and alternatives can leave owners and managers overwhelmed and confused as to what to do. http://www.dol.gov/ebsa/healthreform/
Understandably, most Florida business owners and managers are asking the question, “What does this mean to me and how do I sort out what is here today and what is down the road in Healthcare Reform?”
The answer is complex and depends on a number of factors including, but not limited to, employee income, the number of full-time and part-time employees, seasonal employees, temporary employees, industry, current health coverage, play or pay, grandfathered plans, and state or federal exchanges.
One area that will impact businesses of all sizes is the significant administrative burden that will be required to navigate all of the regulations associated with Healthcare Reform. With impending Healthcare Reform, businesses can no longer could afford a lack of sophistication in their human resources processes.
Compliance reporting, benefits administration and managing employee data are just a few of the back-office tasks that will become more difficult for small businesses to handle once all of the requirements of PPACA take effect. http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions
To alleviate PPACA compliancy, avoid penalties and fees and reporting anxiety, employers need a trusted resource that can clearly explain which provisions affect them so they stay compliant, avoid fees, fines and penalties, and make the best possible decisions.
Developing a strategic partnership can help. Small businesses will undoubtedly need help navigating this complex legislation and outsourcing a portion or all of the administrative tasks associated with it. Choosing the right strategic partner will help ensure these requirements.
Business owners and managers are also struggling with what to do and where to turn to for relief, guidance and help to guide their decisions on PPACA. Strategic partners will need expertise in critical employment-related components impacted by the legislation. This includes payroll and related taxes, employee benefits administration, human resources and employment related consulting.
Professional Employer Organizations (PEOs) have emerged as a fantastic solution. PEOs are helping employers and employees with what is in place today and what is on the horizon. PEOs already have in place staff expertise and advanced systems specific to handle healthcare information, greatly simplifying PPACA compliance and reporting. Further, they offer up-to-date understanding of legal and regulatory requirements associated with Healthcare Reform and expertise precluding and safeguarding against liabilities issues.
Entering into a PEO partnership will ease the Healthcare Reform burden, reduce the stress, save costs, reduce administrative burden, ease mandated reporting, freeing the employer to focus on their core business.
Although PPACA requirements do not take effect until January 1, 2014, many questions remain about how these mandates and provisions will be implemented, business owners and managers understandably want to get a handle on the implications for their business now. Having the right strategic partner to help guide and assist a business is critical considering what is coming in the next few months.
Steve Chavoustie is a Professional Employer Organization (PEO) specialist with Danna-Gracey, a state-wide independent insurance agency dedicated solely to insurance coverage placement for Florida’s doctors and healthcare providers, including medical malpractice, workers’ compensation, physician and employee benefits, and PEO services. To contact him call (888) 978-5457, or e-mail SteveC@dannagracey.com.
By Steve Chavoustie