News - Personnel Source, Inc

Is your company ready for health reform?

Personnel Source

The Patient Protection and Affordable Care Act (PPACA), commonly called Obamacare or the Affordable Care Act, is a United States federal statute signed into law by President Barack Obama on March 23, 2010. Together with the Health Care and Education Reconciliation Act, it represents the most significant government expansion and regulatory overhaul of the U.S. healthcare system since the passage ofMedicare and Medicaid in 1965.

PPACA is aimed at increasing the rate of health insurance coverage for Americans and reducing the overall costs of health care. It is suggested that it provides a number of mechanisms-including mandates, subsidies, and tax credits-to employers and individuals in order to increase the coverage rate. Additional reforms aim to improve healthcare outcomes and streamline the delivery of health care. PPACA requires insurance companies to cover all applicants andoffer the same rates regardless of pre-existing conditions or sex. The Congressional Budget Office projected that PPACA will lower both future deficits and Medicare spending.

Impact of health reform to employers...

Beginning in 2014, employers with 50 or more full-time equivalent employees may be subject to a penalty tax if they do not offer health care coverage to all full-time employees (and potentially their dependents).

These employers may also be subject to a penalty if they offer coverage that is unaffordable or does not provide minimum value. These penalties, known as the "Pay or Play" penalties, will affect an employer once any full-time employee purchases health insurance through an exchange and receives a tax credit or cost-sharing reduction related to the coverage.  More here...

What can be done to prepare...

We at Personnel Source have been monitoring and studying the effects of the PPACA as the rules and guidance papers have emerged. In the coming weeks we will be presenting a survey designed to help us further understand our clients preparedness for the PPACA's upcoming mandates and to help us present services aimed directly at helping our clients meet the regulations with as little cost and disruption as possible.  Watch your email inbox for our upcoming survey and take a few minutes to help us help you.

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