Managing Employee Hours: Measure Twice, Cut Once

avatar
by on · Leave a Comment

It’s an open secret that many employers who will be financially impacted by the coverage expansion intend to manage employee hours to ensure employees remain below an average 30-hour work week when measured over a period of time. However, this strategy is not that simple. Employers must take note of the nuances of the law or expose themselves to huge fines. First, the strategy of managing hours and applying look-back measurement periods is not applicable [...] Read more »

One More Straw: Figuring Out “Easy” ACA Tax

avatar
by on · 1 Comment

The comparative effectiveness tax is a small part of ACA.  Under the law, health plans are assessed an excise tax of $1 per covered life per year. The fee escalates to $2 PMPY and then increases by inflation. The tax is payable annually on 7/31 on form 720. Sounds easy.  Sure. Consultants, health plans and employers are either hopelessly oblivious or frantically trying to figure out if they are required to pay this tax and [...] Read more »

It’s Your Problem Too: Help Employees Save for Healthcare Costs in Retirement

avatar
by on · Leave a Comment

In retirement, employees need to not only meet their basic living expenses but also thrive once their employer paycheck stops. Sadly, most working employees tend to be woefully unprepared for retirement and underestimate both the cost of everyday living and the cost of their healthcare. Why should employers worry if retirees have not saved enough to meet their healthcare needs?  One side effect of workers who can’t pay their medical bills is an elderly workforce [...] Read more »

Coverage Expansion: Watch the Belly Buttons

avatar
by on · Leave a Comment

As I’ve blogged before, employers who provide generous benefits at a reasonable cost will do fine under ACA.  But—and there is a big but—employers who continue to offer generous benefits will face eligibility expansion and therefore costs that increase greater than healthcare trend. So, generous employers, be warned: ACA doesn’t mandate that employers offer coverage to spouses, and some employers will use the cover of ACA to reduce the number of covered members under their [...] Read more »

100% Preventive Coverage: But Will They Use It?

avatar
by on · Leave a Comment

Ultimately, ACA will be judged by whether it actually improves affordability for all. How will affordability improve for those not eligible for tax credits and subsidies offered through the exchanges in 2014? There are several keys to affordability. The first is to broaden the risk pool by getting everyone covered and eliminating adverse selection. The second is to create more efficient care through ACOs, patient-centered medical homes and treatment based on comparative effectiveness. The final key [...] Read more »