According to a poll by Ernst & Young, many employers took the first official step to inform their employees about the health insurance exchanges, with 67% of respondents having issued the required “Notice of Exchange” to employees before October 1. Some employers also discussed coverage affordability and minimum value requirements with full-time employees, to reduce confusion about employer health care plan options and subsidies.
Proposed tax-reporting regulations, and the effect on their systems and documentation management procedures, are other PPACA-related factors employers are encountering. The poll found that about 50% of respondents are unsure of which reporting strategy will be best for their company. For those companies that have decided on a reporting strategy, 10% said they will use the more rigorous general method, 26% will use the simplified W-2 option, and 8% will use a certification of minimum value at the onset and deal with any potential inquiries by the Internal Revenue Service (IRS) later.
One in five companies is moving forward with its PPACA adoption plans, consistent with results from an earlier Ernst & Young conducted in July. Data showed the majority of respondents (69%) are either still evaluating the PPACA landscape or do not yet have a solid plan. Employers that are postponing implementation in 2014 may require increased employee communication, since some workers may not be eligible for exchange-subsidized coverage in 2015, according to the poll.
The poll was part of webcast that was conducted October 3. The webcast can be viewed here.