One of the most notable claims made by president-elect Donald Trump during his campaign was his intention to repeal and replace the Affordable Care Act (ACA). Now that he has won the white house and the Republican party has the majority in Congress, the reality of a major health care overhaul is beginning to seem like more and more of a reality. [more]
Many experts remain skeptical that the landmark health care law will be completely repealed, given its expansive, wide-reaching effects. It is much more likely that portions of the law will stay in place, but the structure and details will be significantly altered.
The implications for staffing firms
For staffing firms categorized as applicable large employers (ALEs), the effects of the ACA are significant. In its current state, the ACA requires staffing firms to provide proof of insurance by mailing in and filing 1094-C and 1095-C forms. ALEs must file a 1095-C form for each employee to prove coverage was available for each month of the calendar year. Form 1094-C is used to report health care summary information for each employer and to transmit 1095-C forms to the IRS. Staffing firms that fail to prove the availability of affordable health insurance are deemed out of compliance and required to pay penalties which could result in a meaningful accumulation of fines.
A Trump presidency could change all of that. His tendency to favor policies with less regulation means the obligation for staffing firms to provide ACA health care coverage could potentially go away. As a result, staffing firms would likely experience lower operational costs and fewer administrative requirements.
Suggested best practices
When or how these changes will take effect remains to be seen. In the meantime, industry experts suggest the best course of action is to stay compliant with the current rules of the ACA and continue with business as usual. Although there are many changes expected to take effect, nothing is set in stone and the consequences of noncompliance are still a very real concern.
If you would like to discuss strategies to maintain your ACA compliance, We can connect you with insurance brokers who understand the challenges of low participation rates in the staffing industry and can provide affordable coverage options.
As new details become available, we will provide updates at AdvancePartners.com. Check back to keep up with the latest ACA developments.