Employers Not Ready for PPACA Regulations

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May 13th, 2014

PPACAThe state of employer-sponsored health plans remains an issue of concern throughout the US healthcare landscape. With the PPACA inflicting new regulations and mandates on employers offering health benefits to their employees, alternate solutions towards traditional employee health plans are becoming more and more popular.

Importance of Employer-Sponsored Benefits

The idea of employers contributing towards their employee’s healthcare coverage remains the norm, even after healthcare reform, as 80 percent of employers polled in an LIMRA Survey agreed they should pay some or all of an employees insurance premium.

The survey highlights the importance of offering an employee health benefits, especially in retaining and attracting top talent. In fact, 9 out of 10 employers say offering medical insurance plays a key role in hiring new employees. While employers are keen to continue this trend, over half of the employers polled expect the PPACA to have a negative impact on their ability to offer such benefits packages. Most of the concern is surrounding the ability for employers to control the costs of their health care, and see it becoming a difficult challenge under the new health law.

Employer Preparedness

Many employers remain in a state of “not-knowing” their responsibilities under the PPACA, leaving many unprepared. In a study carried out by a Nielsen research team, more than 800 executives from across the nation were polled on their preparedness to implement the PPACA’s new regulations. Employers who fail to comply with the new health law can face many new penalties and liability risks, possibly resulting in legal or regulatory action.

Researchers found that many of the nation’s employers have failed to keep up with impact the new health law may have on themselves, as public attention has been too heavily concentrated on consumer regulations. As a result, many are unaware of how impactful the law really is.

  • 36 percent of employers say they are not very familiar with the PPACA’s requirements.
  • 31 percent of employers report being somewhat familiar.
  • 25 percent admit to have not yet begun preparing.

For those employers who have kept their due diligence and are now ahead of the pack in being prepared for the new requirements surrounding employee health benefits, certain trends are beginning to take shape – revealing new alternate solutions to traditional employer-sponsored health plans.

Employee Health Month

In celebration of Employee Health Month, PayerFusion Holdings is asking employers to share their stories on how the PPACA has affected them, could affect them, or how they have dealt with its impact. The most inspiring or innovative stories will be shared with the PayerFusion family, while some will even be showcased at one of upcoming Health Insights Symposiums.

Comment below to share your story or strategies! For more information regarding our Health Insights Symposium or if you may be interested in attending, email us here at marketing@payerfusion.com.