After President Barack Obama secured re-election, many health experts agree that the full implementation of the Patient Protection and Affordable Care Act – which is slated to go into effect January 1, 2014 – is all but certain. Because of this, healthcare policy expert Henry Aaron of the Brookings Institution says business owners should take a few things into consideration so that they can ensure they're compliant with the healthcare law.
Speaking with Inc. magazine, the most important and fundamental decision business owners will have to make is whether they will continue to offer employee benefits to their workers or direct them toward state exchanges, Aaron advises. Business executives' decision on this matter will largely come down to their payroll size, as companies that employ more than 50 workers will have to provide a plan or face a penalty. Smaller companies that have payrolls under this benchmark do not carry the same mandate, but companies that have 25 or fewer workers may find it in their best interest, as they may eligible for a 35 percent tax credit.
Aaron also says that business owners may want to follow the lead of the states in which they run their businesses to see how they comply with the PPACA. Depending on how actively states promote these exchanges, business owners may want to provide them with details about the state-run exchange, enabling them to compare it with their employer-based plans.
Additionally, Aaron told Inc. that business owners should not rush into setting up their health benefit programs. Company owners don't have to ensure they're compliant until October 2013 at the earliest, while the legal date isn't for another three months after that.
However, the amount of manpower it may take is considerable. According to a recent study from the Tax Foundation, it will take 80 million man-hours per year for all businesses to reach HR compliance with the new healthcare law.
