In the News: How Will Rising ACA Premiums Affect Employers?
By now, you have likely seen numerous headlines and reports about Affordable Care Act (ACA) health insurance premiums increasing an average of 25% for the 2017 plan year. While this increase may be worrisome for plan subscribers, it’s important for employers to understand the implications of these rising ACA premiums as well.
What do ACA (also known as Obamacare) premium increases mean for employers?
Because rates are increasing and individuals will seek additional cost savings, employers should expect that more employees will apply for a subsidy (also called an advance premium tax credit) through the marketplace. This means that employers and HR professionals will need to be prepared to collect, process, respond to, and potentially appeal greater volumes of subsidy notifications. Based on the experience of the Equifax Subsidy Management Solution team to date, approximately 35% of subsidies may be appealable. And because appeals can often require 30+ pages of documentation, having a plan in place to handle this process will be imperative. To learn more about the subsidy appeal process, download our ACA Subsidy Guide for Employers.
Employers should also be prepared to handle sensitive subsidy appeal process conversations with employees who – while they believed they were entitled – may not actually qualify for subsidies, according to your documentation. Watch our on-demand webinar to hear how an employer is handling ACA subsidy appeals and communication with their employees.
Recommended For You
Human capital management is ever changing. Managing employees throughout the lifecycle includes complicated processes, like keeping up with changing legislation […]
This week, two important events took place in the world of the Affordable Care Act (ACA): Employers began receiving Letter […]
We’re counting down to the HR Technology Conference & Expo in Las Vegas from Sept. 11-14. HR Tech always delivers […]
Background Per ACA regulations, to avoid compliance risk under Internal Revenue Code section 4980H, an Applicable Large Employer (ALE) — […]