Despite delays in the implementation of several elements of the Affordable Care Act’s, companies will have to be ready for amendments to healthcare management. However, many small businesses are unsure of how to fully prepare for many of the upcoming changes or what they will mean for their everyday operations. Healthcare financial services outsourcing companies can help small businesses alleviate this uncertainty.
Small businesses lack understanding
A recent survey distributed by PriceWaterhouseCooper reported that while 72 percent of private companies consider themselves prepared for the ACA requirements due to be implemented in Jan. 2015, only 35 percent said they are well-prepared. Moreover, only 19 percent of private enterprises have specifically planned out the actions they willbsp; take to comply with the ACA. Another 21 percent said they are uncertain about how they will meet the terms of the law.
Outsourcing companies can help smaller enterprises accommodate the changes resulting from the healthcare legislation. One aspect of the health laws confronting small businesses is potential enrollment in health insurance exchanges.
An April survey conducted by the Wall Street journal and Vistage International showed that 11 percent of companies earning less than $20 million annually reported that their biggest healthcare reform concern was understanding how insurance exchanges will work.
Eligibility for the online marketplaces will be based on the number of workers a company employs. For organizations with a staff of 100 or fewer workers, the insurance exchange aims to lower costs and make is easier employees to manage their healthcare benefits. By creating a large pool of participants, the insurance exchanges aim to create more competition among insurers, which would result in lower premiums.
Small businesses have the most to lose
The fines for noncompliance with government coverage requirements can be severe.
According to The WSJ, a business with a staff of at least 50 employees can expect to face a $2,000 fine per employee who is not provided coverage. What’s more, while a company may offer insurance coverage to its employees, it could face a penalty of $3,000 for each worker who gets a coverage through state insurance exchanges but the insurance doesn’t meet the legislation’s minimum requirements.
With the insurance exchange program expected to begin in 2014, companies wishing to avoid penalties for not meeting the federally mandated requirements for coverage for full-time employees can benefit from working with a healthcare outsourcing company that has the expertise to understand the intricacies of the legislation.