1. Understand the ACA:
The ACA is a law passed in 2010 that aims to make healthcare coverage more accessible and affordable for all Americans. It includes several major reforms, such as prohibiting insurers from denying coverage due to pre-existing conditions, expanding Medicaid eligibility, requiring employers of a certain size to offer health insurance plans or pay a penalty, and providing subsidies for individuals to purchase health insurance.
2. Determine Applicable Large Employer Status:
The ACA applies different rules to employers depending on their size. Generally, if an employer has 50 or more full-time employees, including full-time equivalent employees, they are considered an applicable large employer and must comply with the law’s mandates.
3. Identify Employees Eligible for Coverage:
Once a business is determined to be an applicable large employer, it must identify all of its full-time employees in order to determine which ones are eligible for coverage under the law and which ones need to be offered coverage or face a penalty. Full-time employees are those who work at least 30 hours per week.
4. Monitor Exemptions & Special Enrollment Periods:
The ACA allows certain exemptions for employers that can’t afford to offer health insurance coverage, or don’t have enough full-time employees. It also provides special enrollment periods during which employees can enroll in a plan outside the annual open enrollment period. Employers must keep track of these exemptions and special enrollment periods to ensure compliance with the law.
5. Establish Qualified Health Plans & Contribution Rules:
Employers must select qualified health plans (QHPs) for their employees and establish contribution rules for those plans, such as how much of an employee’s premium will be paid by the employer and how much the employee will have to pay. These plans must meet certain criteria and provide essential health benefits that are outlined in the law.
6. Comply With Reporting Requirements:
The ACA requires employers to file reports with the IRS each year, including Forms 1094-C and 1095-C, which detail their compliance with the law’s mandates. Employers must also provide employees with a copy of Form 1095-C by January 31 of each year.
7. Educate Employees:
It is important for employers to educate their employees on their rights and responsibilities under the ACA, as well as how to enroll in health insurance coverage if it is offered by the employer or through an exchange. Employers should provide clear information and hold informational meetings to ensure that employees have all the necessary information.
8. Review & Update Policies Regularly:
Employers should review their policies and procedures related to ACA compliance regularly to make sure they are up-to-date with any changes in the law or regulations. This includes reviewing employee eligibility criteria, contribution rules, reporting requirements, exemptions, special enrollment periods, and any other policies pertaining to compliance with the ACA.
9. Consult Professionals When Necessary:
ACA compliance can be complex and difficult for employers to manage on their own. It is important for employers to consult with a qualified professional when needed in order to ensure that they remain compliant with the law’s mandates.