This Business Insurance article highlights new survey data showing that most respondents aren’t prepared for the 2016 play-or-pay and minimum essential coverage reporting. The results are concerning considering the complexity of the reporting requirements and the fact that employers must compile monthly data in 2015 to comply. This is what we learned when we polled close to 1000 employers in early March:
- Only 21% of respondents are well under way in establishing their reporting processes — 55% are just starting and 24% haven’t started yet.
- When asked how they will prepare and distribute the Forms 1094-C and 1095-C, 45% of respondents didn’t know yet — 21% planned to handle in-house, 17% were going to use their payroll vendor, 9% were using a different third party, and 7% were going to use their enrollment vendor.
- When asked if they would be able to use a “simplified” employer reporting method, 37% said they didn’t know yet.
The good news is that since early March we have seen increased employer activity to comply with the reporting requirements. But, we’ve also seen some employers who thought they would handle the reporting in-house change course and seek third-party assistance after learning more about the requirements. If you haven’t figured out how to handle ACA reporting in 2016, the data shows you are not alone. However, it’s best to get started — the requirements are complex!
Go to full article: www.businessinsurance.com