Determining your foundation
The Affordable Care Act (ACA) is ever-changing. And, most employers can still expect costs to increase by 2 to 3 percent in 2014 from new fees, plan design changes, and higher enrollment due to the individual mandate.* Plus, avoiding the excise tax in 2018 is still a real concern, which will continue to drive change.
The one-year delay of employer mandate-related penalties and reporting gives employers more time to cope with the challenges to comply with requirements, but changes still need to happen. And sooner rather than later could be the best bet for creative cost management.
An important part of the road to reform compliancy involves helping you understand your options, you first need to know if it’s better to play, and maintain or modify your current health plans, or pay, and expend the penalties that come with moving your employees to a state or federal exchange.
This is not an easy process, and one that can take a bit of time to analyze. But, we can help you determine the best course and what’s most cost effective for your organization. It’s important to keep four things in mind:
- Medical plan — Determine if you want to keep your current medical benefits as is, update or enhance them. Are you happy with your current plan? Do you need help to weigh your options? Should you offer high-deductible health plans (HDHPs)?
- Company contribution — Define your company contribution. Will it remain the same if you maintain your current plan? Should your employees purchase less coverage and gain other employee-paid benefit options? Defining your new budget, alongside requirements of reform is imperative to developing your new strategy.
- Supplemental benefits — Depending on the changes created in your plan, you may find that offering more options for employee-paid benefits will help enhance your benefit package. Employees are craving options right now to reduce their risk of out-of-pocket costs. So examining voluntary benefit carriers can be a great alternative.
- Wellness provisions — Don’t forget to examine and account for the cost of your wellness program in light of recently issued regulations that are effective for plan years on or after Jan. 1, 2014. Read more.
Once a complete benefit plan is determined, and premiums are set, the next task can be just as overwhelming — communication.
*www.voluntary.com. Delay in Health Reform Penalties for Employers Leaves Many Issues Still to Resolve, July 9, 2013.