Navigating Affordable Care Act Compliance For Employers
Posted by Admin on March 10, 2015
We all know the saying, “If it’s to good to be true then it probably is,” and that still holds true in the post-Affordable Care Act (ACA) world too. The problem is that there are people willing to let you make a bad decision for a quick buck and they disappear when the fines and penalties come.
If your company offered a MEC Plan to employees for 2015, there’s now one more concern about the advice you received. In the last twelve months, some companies, associations, and even agents and brokers have suggested that a Minimum Essential Coverage (or MEC) will resolve a large employer’s mandate under the Affordable Care Act (“Obamacare”).
When the ACA reporting forms for large employers (Forms 1094-C & 1095-C) were released in February, they included new instructions that require an employer to report to both the employee and the IRS whether the coverages offered were both MEC and met the law’s minimum value (MV) standard. Since these MEC plans that only offer 100% preventive benefits and often integrate other limited medical benefits do not meet the MV standard, the employer must use code 1F on these reporting forms. This is essentially a confession that your plan doesn’t measure up, and will put the regulator’s spotlight on your company. If this has happened to you, it’s time to realize you’ve gotten bad advice and to get back on the right path to avoid both penalties and unwanted attention from the IRS, DOL, and other federal agencies who will use this law’s rules to start digging into any potential wage & hour, independent contractor, safety, tax, and benefit issues. You don’t want to be in that hot seat.
Broome Associates has been working with employers throughout North Carolina to find affordable solutions to avoid both the attention and the penalties that accompany Obamacare’s mandates. We help our clients not only find what works for them, we’ll help scope your issues and provide proof of your company’s compliance to avoid the investigations that will follow those ignoring the law.
If you are concerned about the direction you were given, please give us a call. Broome Associates is here to help.