Thanks in part to the Affordable Care Act, everything appears to be falling into place when it comes to Americans' access to health care.
For example, for the first time in several years, the uninsured rate in the United States has fallen below 12 percent, according to a poll done by Gallup, down from nearly 15 percent in 2008. In the South – a region that historically has had a high number of residents without health insurance – the uninsured rate has plummeted by double-digit decreases.
Furthermore, with regard to the ACA specifically, roughly 20 million formerly uninsured individuals are now covered as a result of the health care law, the U.S. Department of Health and Human Services has reported.
But there's more to the story than meets the eye, particularly for employers and what they're required to do in the post-ACA world.
Several employee benefits experts contend that 2016 is one of the more trying years for businesses attempting to abide by the health care law mandate. Liliana Salazar, a compliance practice executive and contributing writer for New Mexico newspaper Albuquerque Business First, recently outlined several obstacles that have management jumping through hoops:
Limited understanding of ACA requirements
Even though the federal government has an online marketplace that allows businesses and consumers to shop for health insurance – HealthCare.gov – many people remain confused about what they're required to do under the ACA, Salazar pointed out. For instance, with regard to the play-or-pay mandate – which obligates companies to offer employee benefits to workers, or else pay a penalty – several companies aren't sure if they're immune to the stipulation or if they must abide by it. This largely depends on how many employees business owners staff, but even here, the threshold has changed year to year.
Lots and lots of forms
Society is increasingly going paperless. As it pertains to forms, though, they're as popular today as ever, simply in terms of how often they're used, not necessarily being desirable. And there are plenty of forms to fill out now that the ACA is the law of the land. The problem, according to Salazar, is many business owners aren't sure which ones are which. Examples include Forms 1094, 1095-C and 1095-B.
Several vendors adding to confusion
Many of these reporting frustrations have been resolved thanks to vendors and the resources they provide. However, there's a lack of consistency among vendors, Salazar referenced, to the point where some are better at explaining the requirements under the ACA than providing the tools companies need to satisfy them. Those who have had a difficult go of it have soured to the health care law due to the red tape and bureaucracy that's accompanied it.
Filing with the IRS
If figuring out forms and ACA rules weren't confusing enough, the IRS has added to the madness. Salazar noted how employers that issue 250 forms or more have to e-file with the IRS. This comes in two phases: first the preparation, which involves registering with e-services in order to receive a Transmitter Control Code from the IRS. A TCC is a principal part of the ACA's Information Returns Program, which went into effect on Jan. 21. Once businesses receive their TCC, they can then distribute the forms.
However, because the Affordable Care Act Information Returns program is relatively new, it's caused several reporting delays, which are being worked out through performance upgrades.
It's this time and hassle that has many businesses underwhelmed by the ACA, more than five years after it was signed into law. Nearly two-thirds of companies believe the reporting requirements to be overly burdensome, according to a survey conducted by the Transamerica Center for Health Studies. Still, nearly 85 percent of employers believe employee benefits are an important component of retaining and attracting staff, current and prospective.
