The Patient Protection and Affordable Care Act was signed into law by President Obama on March 23, 2010. More commonly known as the ACA, the legislation was originally intended to ensure that more people had health insurance coverage in the United States. It also had goals to improve healthcare quality and insurance quality, to regulate the health insurance industry, and to reduce healthcare-related spending in the U.S.
Since 2010, many changes have been made to the original legislation including elimination of taxpayer penalties associated with lack of coverage, shortening of the enrollment period, the state option to initiate work requirements to qualify for Medicaid, and an ongoing expansion of subsidies for individuals to use in securing affordable coverage. As a result, the ACA’s already complex set of requirements have become even more complicated for businesses to manage.
Most organizations would benefit from having assistance while navigating the compliance labyrinth associated with the ACA. It is important to note that complying with the law isn’t just about printing forms out at the end of the year – it’s about navigating an ongoing set of requirements. Specific challenges that hinder an HR organization’s ability to fulfill their ACA obligations include:
Inconsistent and siloed data stored in disparate systems (e.g., payroll, benefits, and COBRA).
Constantly changing IRS reporting codes
Calculations need to be run monthly
Many data and employer nuances make calculations difficult.