Most employers have been waiting to address PPACA requirements
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Mercer, an HR consultancy, recently polled over 4,000 U.S. employers to find out their status on implementing the new requirements for 2012 and 2013 related to the healthcare reform law. The majority of respondents indicated they had been waiting for the court’s ruling before moving forward with implementing the new requirements for the coming year and beyond.
While 40% of respondents said they will begin taking action now that the court has ruled, another 16% said they will continue to wait until after the November 2012 elections to start implementing any mandated efforts in 2013 and the balance of 2012.
Employers should stay the course on implementing the new requirements. While the law will continue to be at the forefront of the political landscape through the November 2012 elections, employers may face penalties for noncompliance with the law as currently enacted.
Employers must act quickly to implement new requirements for 2012 and 2013, such as:
- Providing summaries of benefits and coverage (SBCs) to their employees for open enrollment periods starting after Sept. 22, 2012.
- Reporting the value of employer coverage with 2012 W-2 forms.
- Complying with new dollar limits on health care flexible spending accounts (FSAs) in 2013.
- Increasing Medicare withholding for high earners in 2013.
- Taking account that the deduction for the retiree drug subsidy will be eliminated in 2013.
- Paying Patient-Centered Outcomes Research Trust Fund fees, calculated on average number of covered lives, generally due July 31, 2013.
- Distributing written notices about the availability of health care exchanges to current employees and new hires, starting by March 1, 2013. (The department of Health and Human Services has indicated it intends to issue model Exchange Notices.)
As a Member Firm of United Benefit Advisors (UBA), the nation’s leading alliance of independent benefit advisors, we can provide you with the right decision-making tools and expertise that you need to solve the new and coming challenges related to the Patient Protection and Affordable Care Act (PPACA).
DISCLAIMER: Because of the generality of this update, and based on particular situations, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice, financial advice and/or the advice of a licensed insurance or certified human resource professional.
© Connelly, Carlisle, Fields & Nichols 2012