Why Your Compliance Express?
Beyond the many new regulations, health care reform delivers harsh realities to employers.
- Chaos and Confusion – Have you read the 11,000 pages of healthcare reform law and regulations? Do you plan on reading them? Each provision, and there are many, puts new requirements on your organization. You’ve dealt with COBRA and HIPAA… they are a picnic compared to health care reform.
- Time Theft – Who on your team will take responsibility for the implementation of reform as it impacts your business? Let’s hope they have a lot of free time on their schedule. You could hire more staff, retain an ERISA lawyer, or put a tax attorney on the payroll. Rest assured this will drain significant time from your operation.
- Potential Penalties – What is the risk of non-compliance? You could ignore the new government imposed responsibilities and conduct business as usual. What are the chances the Feds will catch up with you? Most experts say pretty good. And the penalties can be stiff. Expect greater scrutiny on other federal laws as well. The compliance police could be knocking at your door.
- Greater Compliance Administration – Even if you have the time, are you prepared to wrap your arms around all of the new compliance requirements? How will you administer each and every new measure that finds its way to your business? You will need new infrastructure to keep you honest as the government phases in each new piece of this law.
- New Costs – One of the goals of the Affordable Care Act is to reduce the cost of health care. Time will tell. In the meantime, your business will absorb new costs. Business owners and high wage earners will feel the brunt of new taxes. Insurance carriers are passing on multi-billion dollar taxes, and increased risk caused by the elimination of underwriting protections is driving up premiums. Plus, high cost medical plans will ultimately be taxed, further driving up rates for many businesses. Meanwhile, there is a cost associated with assuring that your business is compliant.
- Difficult Decisions – The health insurance landscape has changed dramatically and your business will be continually faced with difficult and challenging decisions. What should you do and when should you do it? Is it in your best interests to continue to provide group medical benefits versus paying penalties? What changes should you make now to protect your business later? What are the liabilities and tax consequences associated with these tough decisions?