The Trade Preferences Extension Act of 2015 more than doubles the original penalties assessed when an employer fails to file ACA’s new forms 1094 and 1095. And if that’s not enough to throw employee benefits specialists and HR departments into a tizzy, now employers must also work through the ramifications of the PACE Act, which amends the definition of a “small employer” To further the level of confusion, the PACE Act also allows states to refine the amended definition.
The world of employee benefits is becoming more and more complex. There are so many variations with properly purchasing, managing and documenting an employee health insurance program. If an employer doesn’t maintain ACA compliance, hefty fines will be levied.
Technology solutions exist today that assist with the transactional requirements of ACA. Software is available to easily set up and manage benefit administration on behalf of clients. This is cutting edge technology that automates compliance testing and reporting. It can also provide a single point of entry for health data, if required, that populates multiple carrier quoting requirements.
Some developers of this type of technology are seeing the potential profit and have decided to move beyond their core competency by actually selling the benefits in addition to the transactional software. New technology brokers are rapidly entering the market through a practice known as “broker of record change”. Employers sign existing insurance over because they believe the technology will take care of all of the intricacies around ACA.
However, this model isn’t working for employers. New technology brokers are under criticism for a lack of quality service. Some of the largest technology brokers offer no onsite, personalized service. Employers soon realize that technology without personalized support does little to improve actual benefits or fine-tune the cost of a company’s benefits program.
An employee benefits program requires more than hitting a specific price point. It also demands more than digitizing paperwork.
The model that provides the greatest value to employers combines the advantages of technology with the value of a seasoned broker with in-depth benefit knowledge. This solution has proven time and time again to deliver the highest level of satisfaction.