Health benefit costs remain stable, health care reform penalties loom large, and small number of HR pros may quit over ACA: 3 things you need to know this week | Segal Benz

Large employers predict 7% spike in health benefit costs for 2014

As employers brace to take on greater costs and administration from the Affordable Care Act in 2014, they can take comfort that overall health benefit costs will remain stable next year. Survey results from the National Business Group on Health this week reveal that employers project health benefit costs to increase 7% in 2014, the same level as this year and in 2012. Perhaps more promising, the survey was conducted in June, before the Obama administration announced its decision to delay ACA’s employer mandate until 2015. 

“Rising health care costs remain a serious concern for U.S. employers,” says Helen Darling, president and CEO of NBGH. “Employers spent considerable time and energy this year designing health plans that comply with the various provisions of the Affordable Care Act that would have become effective next year. And while the decision to delay provisions related to the employer mandate has provided respite from some of these requirements, the pressure remains on employers to lower costs. Interestingly, many respondents indicated that a portion of their budgeted costs for 2014 was to implement changes mandated by the ACA. With the delay, it is unclear how employer costs will be affected.”

Other interesting data nuggets from NBGH’s survey include:

• 41% of employers believe COBRA participants might find health insurance exchanges to be the most cost-effective option; 26% predict pre-65 retirees may join exchanges and 20% say the same of part-time employees. 
• 36% say implementing a consumer-directed health plan is the most effective tactic to control rising costs, and 72% now offer one.
• 44% currently have an onsite clinic in at least one location. 
• 88% conduct health assessments and 83% conduct biometric screenings.

ACA penalties to cost employers $100 per day

Thank goodness for benefits legal eagles like the ones at Fox Rothschild. Without them, you may have forgotten—or maybe not know at all—that in addition to the $2,000 per employee per year penalty for not offering health benefits and the $3,000 penalty for not offering affordable coverage, the Affordable Care Act also levies $100 per day penalties for noncompliance.

According to the law firm, ACA requires employers to correct compliance failures within 30 days of discovery or self-report a $100-a-day penalty for failing to comply on IRS Form 8928.

But that’s not all! There’s another “dirty dozen” list of penalties that carry $100-per-day consequences—for each violation:

1. Violating non-discrimination rules (when they are finally written for insured plans)

2. Violating limits restrictions

3. Failing to extend coverage to dependents to age 26

4. Having retroactive rescission of benefits

5. Failing to cover preventive care

6. Failing to have a revised appeal process (including external appeals)

7. Failing to provide timely notices

8. Violating restrictions on emergency room visits

9. Violating restrictions on designation of primary care physicians

10. Improperly excluding pre-existing conditions

11. Having excessive out-of-pocket costs

12. Violating the 90-day waiting period limit

This week’s hidden gem: Sliver of HR pros ready to quit over ACA headaches

Yes, ACA is confusing. And burdensome. And potentially cost prohibitive. And gives you a very long and detailed list of items to communicate. But it is worth quitting the profession?

Yes, according to 2% of HR professionals surveyed recently by Keas, who said their biggest concern about the law is that once it’s fully implemented they won’t want to work in HR anymore.

Pros’ top concern: Being overwhelmed by employee communications and questions (39%). That’s certainly understandable. Psst—by the way, we can help you with that!