Sponsored Content by Maestro Health

Seventy-five percent of brokers listed ACA compliance as the top HR/benefits priority for their clients in 2016, according to a recent third party research study sponsored by Maestro Health.

It’s easy to see why. The National Law Review states that employers are on the hook for more requirements (and more penalties for not meeting those requirements) than ever before. Now, employers who file ACA-related IRS documents late — or not at all — can be fined up to $3,178,500 (previously $3 million). While most employers won’t reach 100 percent of the maximum penalty, these unexpected costs can do serious damage to their bottom lines.

Adjusting to this wave of new regulations is costing employers a heap of extra time and money — even before the penalties. As Microcap Management reports, “The key to compliance with new health care requirements is paperwork, paperwork, paperwork.” All of this added paperwork is more than a nuisance; it can have a huge impact on a company’s productivity and administrative costs. With everything else on their plates, few employers have the resources to hire additional staff or spend hundreds of hours navigating complex ACA reporting requirements on their own.

For example, employers are required to properly code each 1094-C form. Altogether, there are about 50 or more coding combinations based on employee situation and the employer offer, and these can change month to month for any given individual.

In short, employers are stuck between a rock (a wave of new reporting requirements) and a hard place (the lack of time and resources to properly meet these new requirements). However, adaptive brokers are in a unique position to equip their clients with the tools they need to relieve this new burden.

The automation sensation

What do humans do when something takes too long? We find a way to automate it. By now, you’re probably aware of the myriad of new solutions that have popped up to help employers with ACA reporting, and many may have already implemented one. The question is, how do you know which one can help your clients the most (and make you look the best)?

Start with this: What can the reporting solution completely take off my clients’ plate? All ACA reporting solutions are not created equal. Many vendors say they offer a complete reporting solution when, in reality, much of the administrative burden continues to fall back on the clients’shoulders. Here are some key questions to ask when seeking a comprehensive ACA reporting solution:

1. Standalone solution: Can the vendor meet your clients where they are by offering the ACA reporting services they need without forcing you to implement their entire platform? Standalone solutions can help your clients easily become compliant without the headaches and cost of implementing multiple systems.

2. Flexibility: Can the solution accept files from multiple sources (HR, payroll, benefits, etc.), provide flexible file formats, and accept multiple file frequencies? How easily can it integrate with your existing systems?

3. Coding: Can the solution automatically provide the coding requirements that were noted above and map them to the proper forms? Also, can the vendor offer visual data verification in digital format to ensure accuracy and eliminate errors? How easily can the system adjust to inevitable changes in employee situations?

4. Form printing and distribution: Once the forms are filled out, printing and distributing them to the right places on time is quite another undertaking. Can the solution complete the reporting process for your clients by printing and distributing forms to the right people at the right time?

5. Data storage and maintenance: Your clients will also have to store and maintain all necessary data in case of an IRS inquiry or audit. Does the vendor help by monitoring a historical database or assists in the event of an audit?

6. Dedicated service and support: Remember, the people behind the automation are just as much a part of the solution as the technology itself. Does the vendor employ certified compliance experts? What level of personal support can they offer to your clients during implementation and throughout the year? When questions arise or unexpected changes occur, people will always be needed to make sure things run smoothly for your clients.

The opportunity of challenge

With the right ACA reporting partner in place, you’ll have an opportunity to deliver immediate value for your clients, while proving that you can adapt to market shifts and stay ahead of the curve. Understanding and being able to provide the latest technology can also get your foot in the door with a wider range of clients — without much extra effort on your end. Keeping track of the latest solutions may seem like a daunting task in today’s world, but at the end of the day, it’s all about asking the right questions.

Instant Insights /

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