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Helping Clients with ACA Strategies and Technology

Helping Clients with ACA Strategies and Technology. Josh Davis Marketing Manager, SaaS hr. Scott Barker Product Marketing, Kronos. Agenda. ACA Overview Employer Strategies Prospective & Existing Client Conversations What Employers Should be Doing NOW What Providers Should be Doing NOW

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Helping Clients with ACA Strategies and Technology

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  1. Helping Clients with ACA Strategies and Technology Josh Davis Marketing Manager, SaaShr Scott Barker Product Marketing, Kronos

  2. Agenda • ACA Overview • Employer Strategies • Prospective & Existing Client Conversations • What Employers Should be Doing NOW • What Providers Should be Doing NOW • Buyer Beware of Non-Compliant ACA Technology Solutions • What Your ACA Technology Should Have

  3. ACA Overview

  4. Important Numbers All businesses with 50 or more full-time-equivalent employees are required to offer “minimal essential” coverage or pay a penalty. Employees with at least 30 hours of service per week or 130 hours of service per month must be offered health care benefits. Employers have 90 days to offer eligible employees health care benefits. Employers have to pay at least 60% of health care benefit costs in order for the plan to be deemed to provide “minimum value”. Per-employee penalty for NOT offering health care benefits to substantially all employees. Penalty for not offering “affordable” health care that provides minimum value to any full-time employee who then receives a tax credit for insurance purchased on the exchange. • 50 • 30/130 • 90 • 60 • $2,000 • $3,000

  5. ACA in the Media …health care reform will force his company to increase pizza prices by 10-14 cents a pie. He estimates that Obamacare will end up costing his company $5-8 million annually. His remarks have sparked anger on the internet, one thread on social news site Reddit, titled “There are plenty of places to get cheap s***** pizza in the world- Anyone else on reddit ready to boycott Papa John’s?” has captured more than 21,000 up-votes and 4,500 comments. Forbes, Nov. 12, 2012

  6. ACA in the Media The country's biggest movie theater chain has stirred a hornets' nest of controversy after announcing…it's cutting hours for thousands of nonsalaried employees to avoid providing health care insurance under Obamacare. Regal is also facing pushback from employees…After getting their hours cut by 25% or more, some full-time managers have resigned. MSN, April 18, 2013

  7. ACA in the Media Get ready for the Internal Revenue Service to play a dominant role in health care. When Obamacare takes full effect next year, the agency will enforce most of the laws involved in the reform… …The agency has to administer 47 tax provisions under Obamacare. They include the right to levy a penalty against businesses and individuals who don't provide or acquire insurance. Noting that the IRS will collect the penalties, the decision labeled them a tax. CNBC, May 6, 2013

  8. ACA in the Media In cutting its forecast for the year earlier on Dec. 4, Darden also said that it was hit by a publicity backlash from tests intended to gauge how it could limit costs for workers' health care. The company had tested hiring more part-time workers and replacing full-time workers who left with part-time workers in select markets to gauge how it could mitigate those costs. Associated Press, Dec. 20, 2012

  9. Employer Strategies

  10. Clients’ Options Look Back • Details that have been changed • Stability was 6 months. Now it’s at least 6 months and equal to look back period • Deadline delay from Jan. 2014 to Jan. 2015 • To be determined • What type of reporting will be required by the IRS? • When will employees need to be auto enrolled? 12 months 3 months 6 – 12 months Jan. 2015 Monitoring Stability

  11. Client Conversations

  12. Client Conversations Questions to Ask Your Clients • Does the ACA pertain to you? • What is your ideal Full time/Part time mix? • Did your PTs break the threshold? • Are your HC benefits affordable? • How will you manage ACA in the future?

  13. Does the ACA pertain to you? • Do you have at least 50 FTEs? • No: Business as usual, but don’t forget to check on it occasionally per your legal advisors. • Yes: You are required to provide your full time employees with “minimal essential coverage.” Your first step in this process is to go through a Look Back period. Look Back Stability Monitoring Jan. 2015

  14. What is your ideal Full time/Part time mix? • Strategic and sometimes philosophical • Full-timers can offer: • Stability • Experience • Higher productivity • Organizational knowledge • More consistent customer service • BUT... at a higher overall labor cost • Part-timers can offer: • Flexibility • Seasonal labor • Entry-level positions • Lower overall labor cost • BUT.. With potentially diminished productivity and customer service Look Back Stability Monitoring Jan. 2015 12 months 3 months

  15. Did your PTs break the threshold? 30% Classified as FT • Once you classify a person as FT and eligible for health insurance you obviously don’t have to worry about their eligibility • The Look Back for Eligibility • Can be from 3 to 12 months • Look back to see if people that have been or would be classified as PT actually exceeded the 30 hour per week threshold over the look back period • The actual mechanics of the calculation are still a bit in flux • IF PTs break the threshold • They need to be offered HC benefits • Could result in $2,000 assessment for each full-time employee per year 70% Classified as PT Look Back Monitoring Stability 12 months 3 months Jan. 2015

  16. Are your HC benefits affordable? • HC benefits must be affordable • No more than 9.5% of employee income • Determining Affordability • IRS offers three safe harbors • One of these is the rate of pay safe harbor • Hours worked × rate of pay > 9.5% • Could be subject to a $3,000 penalty per occurrence 30% Classified as FT 70% Classified as PT Look Back Monitoring Stability 12 months 3 months Jan. 2015

  17. How will you manage in the future? Benefits Administration • Employees need to be enrolled within 90 days of eligibility • Eligibility alerts to HR Monitor part-timers Proactively manage workforce • Control the scheduling process • Approaching FT alerts • Guided staffing decisions • Audit-worthy reports 30% Classified as FT 70% Classified as PT Look Back Monitoring Stability 12 months 3 months Jan. 2015

  18. What Employers Should Be Doing NOW

  19. What Should Employers Be Doing? • Defining strategy • Defining action plan to carry out strategy • Evaluating technology that will help them carry out the strategy and remain compliant • Communicating plans with employees

  20. What Providers Should Be Doing NOW

  21. What Should YOU Be Doing? • Understanding strategies throughout your client base • Define action plan on how to walk clients through carrying out specific strategies • Put a sales plan in place for prospective clients based on existing client strategies • Garnish the technology to help clients carry out their strategy and help them remain compliant

  22. ACA Technology - Buyer Beware

  23. ACA Technology - Buyer Beware • Applicable Large Employer Reports • Calculations Compliant with Legislation • Payroll System ACA Solutions • Reports Disguised as ‘Solutions’

  24. What ACA Technology Should Encompass

  25. ACA – Best of Breed Technology What an ACA Solution Should Be • Comprehensive Company and Employee ACA Status Visibility • Automation of ACA Strategy Enforcement • Closed-Loop ACA Process Administration • Determining Plan “Affordability” • Ongoing Monitoring • IRS reporting

  26. ACA Manager™

  27. ACA Manager – How SaaShr Can Help • Profile-Based Rules

  28. ACA – How SaaShr Can Help Employee Timeline View • Unlimited timeline view of detailed data by employee

  29. ACA – How SaaShr Can Help Management Dashboard • Dashboard will view with drill-down capability • Notifications sent to managers upon status changes

  30. ACA – How SaaShr Can Help Closed-Loop ACA Process Administration

  31. Benefits of the Partnership • Go Up Market Effectively / Improve Close Ratios • Collect More Revenue Per Employee • Experience Less Churn / Higher Retention Rates Increase Profit

  32. Resources • Kronos (ACA Resource Page) • http://www.kronos.com/affordablecareact.aspx • Kaiser Family Foundation • http://kff.org/ • Internal Revenue Service • http://www.irs.gov/ • Huffington Post (News Feed) • http://www.huffingtonpost.com/news/obamacare • USA Today (Microsite) • http://usatoday30.usatoday.com/exp/affordable-care-act/index.html

  33. Thank You For Attending

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