You may be wondering about compliance ramifications of the recent Justice Department’s announced support of a Texas federal judge’s ruling that struck down the Affordable Care Act. For the moment, there are none. The ACA remains the law of the land while the ruling is being appealed to 5th U.S. Circuit Court of Appeals in New Orleans.
Employers still responsible for offers and reporting
Businesses have the same obligations to their employees. ACA requirements are determined by the size and structure of your workforce. Applicable Larger Employees (ALEs) must offer minimal essential health insurance to their employees or face a fine. They also have reporting responsibilities as do smaller employers who sponsor self-insured health insurance coverage. (See IRS Affordable Care Act (ACA) Tax Provisions for information.)
What’s happening with ACA?
It’s likely on the way to the Supreme Court. The Society for Human Resource Management (SHRM) quotes Edward Fensholt at Lockton, a benefits brokerage and consultancy based in Kansas City, saying that no matter how the 5th Circuit court rules, the case will certainly go to the Supreme Court (See SHRM article). If the Supreme Court does hear the case, it will be the third time is has been asked to weigh in on the law’s constitutionality. In 2012 the Court ruled to uphold ACA, finding the requirement to require most citizens to have health insurance or pay a penalty fell under the Congress’s power to levy taxes. In 2015 it rejected a challenge to the law’s provision that provided healthcare subsidies to qualifying citizens.
Just as nothing changed after the December 2018 ruling, nothing is changing now. We will wait for the Supreme Court ruling. Meanwhile, businesses, stay compliant!
We would like to help
My Workforce Analyzer (MWA) can help you use information from Sage HRMS or Abra Suite to track employee hourly data and determine employer size requirements under ACA. For more information about MWA or how Delphia can be of assistance, check out MWA’s product page, contact Sales through our website or call 1.888.421.2004.
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Mary van Balen is based out of Columbus, Ohio and is a writer for Delphia Consulting. Mary contributes to the Delphia blog on Human Resources issues and Delphia Consulting and Sage product related updates.