ACA Compliance – What Employers Believe about the Costs
A survey by the International Foundation of Employee Benefits Plans shows that a majority of organizations believe that the largest increases in health care costs from the Affordable Care Act (ACA) are yet to come.
The survey report, 2015 Employer-Sponsored Health Care: ACA’s Impact calls out the fact that 27 percent of employers expect the largest cost increase from the ACA to hit in 2018, when the “Cadillac Tax” kicks in.
An article on the SHRM website featuring the report states “The nondeductible 40 percent excise tax will be levied on plans that cost in excess of statutory thresholds (in 2018, $10,200 for self-only and $27,500 for family coverage), regardless of whether premiums are paid by employers or employees.”
Twenty percent of employers also responded that they think the excise tax on high-value plans will be top compliance-related cost-drivers going forward.
The survey also asked employers what they think will be the top compliance-related cost-drivers going forward. They responded:
• The excise tax on high-value plans (20 percent of employers).
• General administrative costs (19 percent).
• Costs associated with reporting, disclosure and notification requirements (13 percent).
“Employers need to devote significant time and energy to maintain compliance with the law,” explained Julie Stich, CEBS, director of research at the foundation, in a news release. “The extensive amounts of data that employers are required to collect can take hours [of labor] and even require complex IT infrastructures.
If your organization is just starting to realize the costs of the Cadillac Tax, or if you’re not sure how you may be affected, check out our white paper for more information.
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Categorized in: ACA