In order to effectively deal with the many healthcare changes which are either coming soon, already taking place or have been completed, employers may want to list all the factors that will affect them and differentiate between short- and long-term needs.
Attempting to deal with only one provision at a time might seem easier, but will likely mean more time spent correcting past decisions in the long run. Some of the biggest alterations will be happening in 2014, so many organizations and experts are focusing on preparations for that year. This risks putting too little effort toward meeting requirements and challenges that are happening sooner, as well as overlooking those to come afterward.
In the short-term, employers may wish to review their compliance with provisions that are already in effect, BLR notes. With the U.S. Supreme Court ruling that the Patient Protection and Affordable Care Act (PPACA) is constitutional, regulatory agencies and officials will be issuing rules and guidance, and may take enforcement efforts more seriously now that the decision has removed much of the uncertainty surrounding health reform.
They should also ensure they are ready to provide a Summary of Benefits and Coverage, can pay fees to the Patient-Centered Outcomes Research Institute, are ready for the 2013 change to the cap on flexible spending accounts and make certain they can meet W-2 reporting requirements.
Big changes in 2014
While focusing on them to the exclusion of other important matters would be unwise, employee benefit plan administration and other aspects of business may be changed significantly by provisions taking effect in 2014. The most obvious of these might be that penalties will begin to apply for employers with more than 50 full-time workers who decline to sponsor health insurance coverage for them.
Another change is that health plans will be prohibited from discriminating between workers on the basis of pay, BLR notes. This provision was delayed from a planned earlier activation date, but regulatory agencies are expected to issue the relevant rules by 2014, if not sooner. Organizations that do discriminate may be required to pay financial penalties. This may not be problematic, given that it essentially encourages consistent plan design, which should mean less of an administrative burden for some employers.
Similarly, the requirement that employers extend automatic enrollment to all new employees may have positive consequences. It should boost participation rates substantially. In combination with the individual mandate, some analyses suggest that the increased number of individuals paying for coverage should lower prices and help stem the trend of rising health insurance costs that has marked recent years and led to much concern. This requirement will only apply to those with more than 200 workers in their employ.
