Risk & Business Magazine CEO/CFO Business Today Magazine Fall 2017 | Page 25

HEALTHCARE LAWS
Healthcare Laws
BY: CAROL SHOWALTER,
SNIDER, FULLER AND STROH
Surviving The Changes
S
ince the 2010 passage of the
Affordable Care Act (ACA),
commonly known as Obamacare,
there has been a flurry of activity
by Republicans to fulfill their
promise to repeal and replace the law with
something new. However, as of the date of
this publication, all attempts to repeal and
replace the ACA have failed. But Republican
hopes of repealing the law, with or without
an immediate replacement, still linger.
Shortly after his term began, President
Trump signed an executive order directing
the regulatory bodies that oversee the
ACA (Health and Human Services, the IRS,
and the Department of Labor) to “waive,
defer, grant exemptions from, or delay the
implementation of” parts of the law that
are seen to have a financial burden on
individuals, businesses or the government. It
is not clear exactly what practical impact this
order will have. Faced with the uncertainty
of how provisions of the ACA will be
interpreted by the regulatory bodies going
forward, and not knowing if the law will
ultimately be repealed or revised, here are
some guidelines for businesses to follow to
stay on course.
REMEMBER THAT THE ACA IS STILL THE
LAW OF THE LAND AND SO MUST BE
FOLLOWED.
Although some have interpreted Trump’s
executive order to call for suspending
enforcement of the penalties associated
with the individual and employer mandates,
the mandates are still in place and the
penalties may still be assessed by the IRS.
The “Cadillac tax,” which would impose a
40 percent excise tax on the cost of a health
plan that exceeds certain thresholds, will
begin to be applied in 2020, emphasizing
the importance of keeping plan costs in
line if the tax is to be avoided or minimized.
And as of now, 6055 and 6056 reporting is
still required of Applicable Large Employers
(ALEs).
BE MINDFUL OF YOUR ORGANIZATION’S
OVERARCHING PURPOSE FOR
PROVIDING BENEFITS.
Employers have different reasons for
providing benefits. For some companies, the
main driver is paternalism, the desire to
take care of employees so they don’t have the
worry of a financial burden in the event they
or family members become ill. Employers
concerned with productivity may view the
financial security that results from a strong
benefits program as essential to fostering a
productive work environment. For others,
the goal is to attract and retain high-caliber
employees. Still other businesses may have
the main objective of providing benefits
for upper management, which ultimately
benefits all employees. Whatever your
company’s philosophy, it’s important to use it
as your guidepost in the face of change.
KEEP UP WITH LEGISLATIVE AND
REGULATORY CHANGES.
These can be hard to track, especially
changes in regulations and in the
enforcement of provisions. It is essential to
have a trusted benefits advisor or consultant
who monitors changes and who has access
to daily updates by national and statewide
organizations specializing in the area of
healthcare law.
IF YOU NEED TO REDUCE MEDICAL
BENEFITS DUE TO RISING COSTS,
CONSIDER ADDING SUPPLEMENTAL
PLANS.
Enhanced benefit policies such as Critical
Illness, Accident and Gap policies—whether
offered on a voluntary basis with payroll
deductions or paid by the business—are
outside the purview of ACA and can help
employees offset higher out-of-pocket
medical costs. Offering Flexible Spending
Accounts (FSAs) or allowing payroll
deductions into Health Savings Accounts
(HSAs) can also go a long way to help
employees manage the cost of care.
America’s system of healthcare payments
and healthcare law may soon be altered
as the cost of medical care and insurance
reaches a tipping point. What the changes
will be is certainly up for debate. However,
by following the guidelines presented here,
your business should be poised to handle
whatever ensues. +
Carol Showalter has been with Snider,
Fuller and Stroh since 1987. She works with
business clients on their group benefits by
designing and implementing life, health,
and disability programs, and assisting with
interpretation of and compliance with
governmental regulations. Carol has been
an independent certified Kolbe Specialist
since 2004, trained to assist with employee
hiring, retention and team building.
Carol works regularly with the CEO, CFO
and the HR staff of our business clients to
provide cost competitive and compliant
benefit plans.
Carol earned a B.A. in Business
Administration from Rutgers University
and a MBA from Ohio University. She is a
Certified Financial Planner™ professional
and a Certified Employee Benefit Specialist
(CEBS) qualifying as a fellow since 1989.
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