Key considerations to reduce organizational risk with ACA compliance management

The Affordable Care Act (ACA) is complicated and penalties can be quite high if your business is unable to comply with the employer mandate and reporting requirements. Intelligent technology, data visibility and seamless reporting are often necessary to meet ACA compliance challenges head on.

ACA compliance management challenges

The ACA requires applicable large employers (ALEs) to provide eligible, full-time employees with health insurance that is affordable and meets minimum essential coverage (MEC) standards. Complying with this law presents five basic challenges:

  1. Determining employee eligibility
  2. Ensuring coverage is affordable
  3. Documenting the right information correctly, from eligibility to offer
  4. Reporting to the IRS and applicable states accurately and on time
  5. Researching, documenting and responding to penalty notices and marketplace notices

How an ACA compliance management solution can help address these challenges

Comprehensive technology, like ADP SmartCompliance® Health Compliance, can help you increase visibility and reduce risks and administrative burdens. Our solution goes beyond simply preparing and filing ACA-required forms and delivers the following:

  • Proactive ACA penalty avoidance
  • Automated monthly compliance calculations
  • Exchange, penalty and regulatory management
  • Government and agency regulatory monitoring and tracking
  • Automated data integrity management
  • Trained and tenured support
  • Established, automated and recurring integration from any payroll, HR or benefits system
  • Simplified and accurate year-end print and transmission
  • On-demand, always-available and populated Forms 1094-C/1095-C

Why should I purchase an ACA compliance management solution?

ACA risks and burdens are very real. The IRS and individual states with health care mandates have different guidelines, penalties, deadlines and filing requirements. In addition, the need to combine and calculate data from many disparate sources that may not have been previously used in this manner increases the chance of costly errors. But with the right combination of technology, analytics and focused expertise, you may be able to identify and resolve ACA compliance issues long before potential penalty notices are issued.