Why the ICHRA might be your best bet for ACA compliance

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ACA compliance has fallen to the shadows as most ALEs (Applicable Large Employers) have implemented a MEC and/or MVP solution. The majority of these platforms are on some type of self-funding, while most plans have provided excess claims dollars back to the employer on an annual basis. This seems to be the good news. What has been lost over time is the struggle of reconciling monthly premium statements against weekly payroll. This hands-on involvement at the corporate level has become accepted as a cost of compliance. This is especially true for groups with lower wage/high turnover employees. For the fortunate few employers who work with a TPA providing true weekly administration, this is not an issue.

As of this writing, the penalties that can be levied against an ALE under the Employer Shared Responsibility Provision (ESRP) should be clear to both brokers and ALEs. There has been little change to the ESRP since the inception of compliance. We have all accepted that those will be around for the immediate future and will increase on an annual basis. Due to changes in ACA compliance over the years, employers need to be aware the current administration has both opened exchange-based enrollment off cycle while simultaneously increasing the amount of premium subsidy available to individuals. This increases the financial risk to employers that currently do not have an MVP in place.