October 1 is Fast Approaching – Are We Ready?
Weighing the Risks of Non-Compliance with the ACA
As an employer, if you tried to work your way through the potential implications and possible penalties related to not complying with the Affordable Care Act, we feel your pain and we have the same headache that you do. You know you’re in trouble when someone has already created a handy flowchart for you, that still doesn’t seem to clear things up. (The flowchart, for example, is already on version three!) We heard the collective sigh of relief from employers when reporting requirements were delayed for a year, but the reality remains the same – the ACA is still the law and compliance will remain an issue for companies.
The added time didn’t give employers more time to turn a blind eye to the law; it provided us with more time to plan. Procrastination will only place employers at greater risk for penalties. Employers and employees remain woefully uninformed, as evidenced by a recent field poll in California where 42% of those polled reported knowing nothing about the California health exchange called Covered California. Covered California is working to help small businesses and individuals. Unfortunately, this scenario is playing out in states across the nation with national polls indicating that only 15% of Americans are familiar with the law.
What to do? Get your collective heads out of the sand. Read. Understand. Deploy. Stop being an uninformed statistic. As a large employer (defined as 50 or more employees), it’s important to grasp that the penalties are real and potentially significant. One study estimates that penalties collected under the law could be as high as $130 billion over a ten-year period. Yes, that’s billion.
While a small employer might not face stiff penalties, failure to understand what’s at stake may result in loss of tax breaks and an inability to attract good employees. Small employers should work hard to understand the implications that not seeking affordable coverage may have on their employees, who will be subject to penalties.
Make it a point, as an employer, to find and absorb good articles and solid advice on the ACA. There is a plethora of information available at your fingertips and it is one Google search away. Avoid articles that are slanted hard to the right or left, they only confuse the issue. If you like and utilize social media, follow some of the well-respected resources out there like KaiserEDU. Look for guidance from business oriented organizations like NFIB, the US Chamber or your state chamber. All are gearing up and keeping their members well informed on what to expect in the year ahead. Continue to check back with us both here and on social media for the latest up-to-date information as well.