The Affordable Care Act and Employer Confidence
The Affordable Care Act Continues to Weigh Heavily on Many Employers
The ADP Research Institute® (ADP RI), a specialized group within ADP®, surveyed 806 senior HR/Benefits managers and executive decision makers in midsized and large U.S. enterprises during August and September of 2014 to learn what impact the Affordable Care Act (ACA) is having on their organizations. While the ACA has been the law of the land since 2010, for many employers surveyed, ACA compliance remains very much a work in progress.
The ADP RI study offers a glimpse into which functions and leaders are ultimately responsible for making ACA compliance decisions, and, generally, what the overall level of compliance preparedness is within these organizations. Has the ACA’s Shared Responsibility mandate adversely affected plans to extend benefits coverage beyond the full-time population required by the ACA law? To what extent are employers shifting health care cost increases to their employees? How prepared are employers when it comes to dealing with the looming Excise Tax on high-value plans (also known as the “Cadillac” Tax)? Do employers have the knowledge and tools to address ACA-related affordability requirements effectively? What role does the quality and integration of Human Capital Management (HCM) data from disparate systems play in the process to achieve a comprehensive ACA compliance solution?
Study Indicates a Continued Lack of Comprehensive ACA Preparedness
The ADP RI study found that many organizations are falling short of meeting all applicable requirements.
According to survey results, only about half of midsized and large employers are confident that they can provide annual health care reporting in a timely fashion. A core reason appears to be the lack of integrated systems that enables an efficient and accurate collection of information for required notices and government reports. As an example, the study notes that many employers may not have an accurate count of unpaid leave hours attributed to the Family and Medical Leave Act (FMLA), Uniformed Services Employment and Reemployment Rights Act (USERRA), and jury duty – all of which must be included in determining an employee’s ACA full-time status. Read the full white paper for more details.
About this Report: The ADP Research Institute conducted the 2014 ACA Study in August and September 2014 and included input from 806 HR/Benefits decision makers in U.S. enterprises. The study universe was comprised of a representative sample of 403 heads of HR, senior HR/Benefits managers and executives in midsized organizations (50-999 employees) and 403 in large ones (1,000 or more employees) who influence decisions regarding their organization’s employee benefits, policies, and systems. The resulting data achieved statistical reliability at the 95% confidence level in each segment.
Tags: Benefits Administration