With the U.S. Supreme Court's recent ruling upholding nearly all of the Patient Protection and Affordable Care Act (PPACA), major source of uncertainty for employers has been removed.
Now, they face the need to comply with the law's provisions. One approaching deadline is the requirement to provide employees with a summary of benefits and coverage (SBC). For HR compliance purposes, the document must be given to all participants and beneficiaries who enroll or re-enroll in group health coverage employee benefit plans through open enrollment periods beginning September 22. Other requirements will not come into play until 2013 or even later in some cases, the Society for Human Resource Management notes.
The fact that the law was upheld also means that provisions which are already in effect will remain, so employers must continue providing dependent coverage to adult children up to the age of 26, among other plan features. Some of the most significant changes coming are the requirement that employers with 50 or more workers provide coverage or face penalties and the implementation of state health insurance exchanges which will be open to small businesses.
Taking action to adjust to healthcare changes
Those changes are expected to cause enrollment to rise substantially. Along with providing the SBCs, employers may need to focus additional attention on educating and informing their workers about health insurance changes and benefit offerings. With so many alterations in progress or scheduled, it may be difficult for most people to keep track without assistance. It might also be a good time to revisit and assess related matters, such as wellness programs.
While the court's decision provides much-needed clarity, many details relating to the PPACA remain to be defined. Guidance may be needed from the U.S. Department of Labor or the Internal Revenue Service on several issues, and firms should be prepared to act on it when it is forthcoming.
