Confident about ACA compliance? Not so much, business owners say

Only 25 percent of business owners are completely confident their organizations understand the Patient Protection and Affordable Care Act’s (ACA) regulations. And less than half feel they are well prepared to effectively manage the complexities of eligibility and affordability requirements of benefit plans under the ACA. That’s according to the fourth annual ADP Midsized Business Owners Study.

“Business owners’ confidence in their ability to comply with ACA requirements may be due to their reliance on their HR/Benefits staff or third-party experts to handle all aspects of understanding and complying with the law,” said Tom Perrotti, president of ADP’s Major Account Services. “While the majority of midsized companies report they’re handling ACA compliance tasks in-house, more are considering outsourcing. Almost 25 percent of respondents this year said they’re more likely to consider outsourcing benefits, up from just 9 percent two years ago.”

While three quarters of respondents express some degree of confidence they will be compliant with ACA regulations, only slightly more than one third are completely confident their organizations will be compliant. The study also revealed that:

• Only one-quarter of business owners completely agree that their company has the tools needed to make the best health benefits decisions.
• Only 49 percent have a plan in place to lower the cost of health care coverage.
• Forty-six percent of employers feel providing employer-sponsored medical health insurance is a major barrier to achieving their company’s business goals, up from 29 percent in 2014.

SOURCE: http://www.adp.com/solutions/midsized-business/resources/article.aspx?id=5140EEBE-7A27-423B-BC17-36DF8CACCE87

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