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Better act on the Affordable Care Act

April 25, 2013

aca

“Do not discuss politics or religion in general company. You probably would not
convert your opponent, and he will not convert you. To discuss those topics is to
arouse feeling without any good result.”

– Hill’s Manual of Social and Business Forms (1879)

I use this old adage with my mom, and with it I also tiptoe into the Affordable Care Act, or “Obamacare,” a name with good and bad connotation, depending on your politics. Yesterday I attended a great overview of the legislation by Liz and Todd, and learned how Kronos is uniquely positioned to help our customers manage through it as the January 1, 2014 2015 deadline approaches. Here are some key numbers I learned:

  • 50 – All businesses with more than 50 full-time-equivalent workers are required to offer “minimal essential” coverage.
  • 30/130 – Employees with more than 30 hours of service per week or 130 hours of service per month must be offered health care benefits.
  • 90 – Employers have 90 days to offer eligible employees health care benefits.
  • 60 – Employers have to pay at least 60% of health care benefit costs in order for the plan to be deemed “affordable.”
  • $2,000 – Penalty for NOT offering health care benefits to an eligible employee.
  • $3,000 – Penalty not offering “affordable” health care benefits. Benefits cost more than 9.5% of an employees annual income.

Organizations are trying to figure out their strategy, and Liz explained that each have pros and cons, requiring a balance of:

  • Costs – What are the hard costs of providing healthcare benefits versus paying penalties?
  • Service – How can I maintain the level of service my customers expect?
  • Retention – How might my decision impact the retention of my best employees, and recruitment of new employees?
  • PR – How might a decision on my ACA implementation decision be perceived by my employees and customers?

Politics aside, these are the Affordable Care Act issues businesses are trying to figure out for their employees, customers, and bottom lines. It’s going to be interesting over time to see how it affects the health of companies working to comply with it.

3 Comments leave one →
  1. Ron permalink
    April 25, 2013 9:46 pm

    “It’s going to be interesting over time to see how it affects the health of companies working to comply with it”

    It’s going to be interesting over time to see how health companies use their leverage over those companies working to comply with it.

    Ron

    Like

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