With the nation’s new health insurance law in full effect, companies and organizations with more than 50 full-time employees are now required to provide workers with affordable health insurance that meets the criteria set by the government mandate.
The Impact of ACA Regulations
In addition to offering ACA compliant insurance, these employers are required to track, document and report the available coverage on all full-time employees.
Employers are on the steep side of the learning curve when it comes to implementing the processes required to remain in compliance with the new health insurance laws. The entire situation is requiring employers to evaluate how they do business and changing how they run their back office.
Every employer who falls into this category is searching to find a solution to address these challenges and determine a way they can comply with the new law.
Forms 1094 and 1095 Explained
Forms 1094 and 1095 are at the core of enforcing the Affordable Care Act. The 1094 is akin to a cover letter that goes to the IRS, and the 1095 will be delivered alongside an employee’s W2. Both forms give the IRS a way to:
- administer compliance with the individual mandate
- determine eligibility for subsidies
- determine employer compliance to offer coverage to all full-time employees and dependents
More Rules, More Forms, More Work
As companies try to find a solution to help adhere to the ACA reporting requirements, they are also forced to evaluate the technology systems that support their back office – because now the HR back office has to track, deliver, comply, and document a host of items that have not been required heretofore. Does an employer have the right technology solution in place to administer the 1095’s? How does that system interact with other software currently being utilized? How do you go about choosing the right system while still running a business?
HR, benefits, and payroll technology can play an important role in solving many business problems. The adopted technology must focus on the problem, or else it will eventually fail.
The Difference Is In The Delivery
At Catto & Catto, our goal is to advise our clients and provide an integrated, elegant solution that is holistic in terms of its functionality in tackling the administrative challenges presented by the ACA. We help employers find the right technology because we know the right questions to ask. Just like a good broker provides a service model around an insurance carrier, a good broker should also provide the consulting, advice, and expertise surrounding the technology solution that impacts the delivery of benefits and compliance. Last year alone, our team conducted 300 searches for middle market companies, and we expect much more in 2015.
About the Author
Ben Halbach is an account executive and partner at Catto & Catto specializing in benefits.