JULY/AUGUST 2011 Article

New Healthcare Reform Survival Guide from Sage helps businesses navigate the murky mandates in the Affordable Care Act of 2010.

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The Patient Protection and Affordable Care Act (PPACA), signed into law by President Obama on March 23, 2010, and the amendments made by the Healthcare and Reconciliation Act of 2010 (together, known as the Affordable Care Act), have significant employment tax and information reporting implications. Although the stated goal of reform is cost reduction, that's not the result so far. In a survey of large employers, Hewitt Associates found the current rate of healthcare cost increase is the largest in five years.¹

Get a copy of the Healthcare Reform Survival Guide, compliments of Sage Abra HRMS.

This new guide addresses changes facing employers as a result of the Affordable Care Act and provides explanations of compliance issues, checklists for employers, and a calendar of important effective dates.

The ramifications of healthcare reform in general, and its impact on employers specifically, continue to cause tremendous political debate and employer confusion. Of particular note are a number of design changes required of new employer-sponsored health plans (or those that do not have "grandfathered status"), new healthcare reporting requirements with staggered effective dates beginning in 2011 and through 2014, and an additional Medicare withholding tax that takes effect in 2013.

Guidance is forthcoming but still inadequate. And it is being issued by a number of agencies, including the Internal Revenue Service (IRS), Department of Labor (DOL), Department of Health and Human Services (HHS), and National Association of Insurance Commissioners (NAIC). The Affordable Care Act is being phased in over eight years, but some provisions are already in effect as of 2010.

It's important that employers stay on top of rapidly changing rules and guidance. The new law is sure to be challenged in courts and in Congress. There will be new agency guidance, judicial opinions, and possibly even new legislation or attempts to defund reform in the federal budget in the months to come. Stay tuned!

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¹ Hewitt Associates, "U.S. Health Care Cost Rate Increases Reach Highest Levels in Five Years, According to New Date from Hewitt Associates," September 27, 2010.