Many businesses are wondering just how compliance with the Affordable Care Act (ACA) may change after the recent election. While the exact changes have yet to be determined, businesses should not sit back and wait, but rather keep moving forward based on the ACA legislation that is in place today. It is also a good time to review the plans and procedures you have in place and fortify any weaknesses because the Department of Labor (DOL) has indicated they will audit every applicable employer for ACA compliance. Are you ready for an audit?
As discussed in “ACA compliance: 4 hidden penalty triggers to avoid,” posted by Jared Bilski on HRMorning.com, the DOL plans to audit every applicable US employer for ACA compliance by the end of 2018. While that seems like a tall order, especially during a change in presidential administrations, employers do not want to risk ACA noncompliance. ACA penalties can become expensive, impacting the bottom line, and that’s not all. Correcting mistakes creates additional administrative distractions and a loss in productivity. Here are examples of noncompliance that could be easily missed, and costly, for your business:
Notice of coverage rescission: Retroactive cancellations of coverage aren’t permitted under ACA, except in cases of fraud or misrepresentation. Employers must provide employees with a notice of coverage rescission or risk invalidating the rescission.
Written notice of patient protection: In some cases, the employer assumes the insurer is sending the notice of protection and, similarly, the insurer assumes the employer has sent it. Not sending the written notice can cost $100 per participant per day, up to $500,000 maximum, which is the standard penalty.
Revising COBRA General and Election notices: This requirement is frequently overlooked; however, there are templates that can be used to update COBRA notices. Noncompliance carries the standard penalties.
Remain ACA Compliant, Prepare for Potential Audit.
Do not wait and wonder how ACA compliance may change, especially as the DOL begins ACA auditing. Strengthen compliance measures by deploying Integrity Data's ACA Compliance solution, a 360-degree system for ACA tracking and reporting. Taking this proactive step offers cost savings, as you avoid common pitfalls and penalties. In addition, this solution provides an easier path toward the current compliance requirements and updates automatically should there be future changes in ACA legislation. Contact Integrity Data for more information about deploying ACA Compliance and being prepared for a potential DOL audit.
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