Majority of Employers Already In Compliance With ACA Mandate

The majority of employers (56 percent) said that they are already in compliance with the employer mandate under the Patient Protection and Affordable Care Act (ACA), according to recent research from PricewaterhouseCoopers (PwC). PwC’s Trendsetter Barometer survey was conducted before the Treasury Department announced that it would delay the employer mandate until 2015. Since the majority of employers are already in compliance with the provision, PwC noted that these employers do not plan to change their health care coverage or contribution levels in anticipation of the ACA requirements that will take effect in January 2015.

Overall, 72 percent of private companies said that they were prepared for the ACA’s next wave of requirements, but only 35 percent said that they were well prepared. Nineteen percent of private companies cited specific actions they plan to take to comply with the ACA, but another 21 percent said they were uncertain about which steps they would take to make themselves compliant. However, very few private businesses plan to take negative steps in response to the ACA, such as dropping coverage (just 3 percent of companies) and scaling back to fewer than 50 employees to be exempt from the ACA (1 percent).

“Having an additional year before the ACA’s mandatory employer reporting requirements start should allay some of our clients’ initial concerns about how best to comply with the ACA,” said Ken Esch, a partner with PwC’s private company services practice. “Business owners should look forward to the Treasury Department’s upcoming implementation guidance, as well as take advantage of the additional time by treating 2014 as a pilot year during which their companies can fully adapt health coverage and reporting systems. Taking such actions should help ensure a smooth transition in 2015.”

For more information, visit http://www.pwc.com.

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