The 2016 ACA Delay was a welcomed relief for some medium sized employers. For others, it meant time to act and make a solid plan. In February, the Obama administration extended the Affordable Care Act (ACA) mandates for employers who have less than 100 Full-Time Employees causing many to breathe a collective sigh of relief. In a press release on the U.S. Dept. of the Treasury web site, the health coverage portion of the ACA mandate for medium sized employers was delayed stating:
Employers with 50 to 99 employees (about 2% of employers): Companies with 50-99 employees that do not yet provide quality, affordable health insurance to their full-time workers will report on their workers and coverage in 2015, but have until 2016 before any employer responsibility payments could apply.
ACA Deadline Delays, Just a Yellow Flag…
Is this 2016 ACA delay really a reprieve or a much-needed wake-up call? If you choose to wait until the last minute, given the delay, you may be happy simply to take this moment to exhale. And, yes some employers will choose to do nothing, using the time instead to avoid any thought of having to cover employees with health insurance until it’s a must-do. 2016 is also the time when big changes are happening to the insurance market for companies with 50 – 99 FTEs. Employers of this size will find themselves included in the small group insurance market (previously reserved for employers with 2 – 50 employees. Doing nothing in terms of adding coverage is a viable option; however, you should be getting en education on how the ACA will affect your plan options in 2016. The changes are big. Is the smarter choice then to use this time to find a good broker who will design the perfect group plan for your employees? Bolster your company’s foundation, get prepared now, and be more competitive in the interim. It’s just a yellow flag in the race – it doesn’t mean you stop driving the course.
The ACA: What We Know for Sure?
At this point we know that the Affordable Care Act is happening. Our recommendation then, is to use this time to find the most competitive options for your company. While other employers with less than 100 FTEs may not be providing health coverage during the delay period, ignoring this delay makes your company more competitive to potential top job candidates who otherwise might choose a larger competitor with better benefits. Essentially, choosing a broker and preparing your options now, means you get a jump on your direct competition and increase your preparedness for the inevitable mandate deadline. If you felt a sense of panic as the initial 2014 deadline approached, consider this a wake-up call. 2016 is just around the corner.
The Bridgeport ‘Benefit’
Based on clients’ unique needs, Bridgeport Benefits is first and foremost a resource for the mid-sized business owner. With over 25 years of experience to offer, you get the personnel, resources, and expertise of a large brokerage house with the added flexibility and personalized approach of a small firm. As stated on our Employee Benefits page:
We are committed to helping you reach your employee benefit goals and be able to recruit and retain the most productive workforce possible. We can help you achieve this at an affordable rate, and with several terrific employee benefit plans.
Choosing a broker now at Bridgeport Benefits means we make it our mission to maximize every resource we have to design a solution to your benefits needs. For more information on this topic or if you have any questions on how Bridgeport Benefits can help your company find employee benefits solutions, contact us today.