A First Time Employer’s Quick Guide to the Affordable Care Act
Compliance with the Affordable Care Act is Must
The Affordable Care Act (ACA), otherwise referred to as Obamacare, is the latest health care reform law in the US. However, since the ACA is a complicated piece of legislation, not many people understand the specific nuances that come with the Affordable Care Act. This leads to the lack of grassroots support for the ACA, which shrouds and limits the enforcement of this specific law.
To further empower the ACA, it is important to educate the people on their rights under Affordable Care Act and know how the ACA affects the fringe benefits portion of the federal prevailing wage laws.
What is the Affordable Care Act (ACA)?
The Affordable Care Act is a healthcare legislation that aims to provide Americans with affordable quality health insurance and reduce the amount of healthcare spending in America. The reforms of the ACA include changes in rights and protections, new benefits, taxes and tax breaks, guidelines for insurance companies, spending, and funding, among other changes in the sectors of the healthcare system in the country.
The ACA makes health coverage more affordable as it lessens the premium and out-of-pocket costs of individuals and families who were previously priced out of their past health insurances. Before, people were discriminated against based on their health status, financial status, or even gender. Now, the ACA has limited the amount that people can be charged with, and has spread risks to all insured participants equally to end discrimination.
Since a healthcare insurance that meets the minimum essential coverage is mandated, participants would be able to utilize their group buying power. This’ll help them get cost assistance and match plans under the Affordable Care Act.
The Mandate of the Affordable Care Act on the Federal Prevailing Wage Laws
The Davis-Bacon Act and the Service Contract Act are federal prevailing wage laws that necessitate covered government contractors to pay prevailing wages and fringe benefits to employees depending on the wage determination made by the Department of Labor. In memorandum 220, the relationship between the ACA and these prevailing wage laws were explained, including the issue of taking credit for Affordable Care Act premiums and the payment for the mandated prevailing wage fringe benefits.
In the DBRA and SCA, contractors can fulfill their fringe benefits requirements by paying employees the cash equivalent of the fringe benefits specified in the wage determination. However, with the introduction of the Affordable Care Act, employers with more than 50 employees are now required to provide healthcare to their workers with the use of the fringe benefits portion of the prevailing wage. Failure to do so will result to stiff penalties of up to $2000 per employee (minus first 30 employees).
First Time Employers Should Seek Assistance from ARCHER JORDAN
Are you a small, medium, or large scale company running a business for the first time? It is necessary to know how the Affordable Care Act would impact the way you provide prevailing wages and fringe benefits to your employees.
ARCHER JORDAN can help you manage those fringe benefits to your employees, give advice in terms of the strategy with dealing with ACA, DBRA, and SCA requirements, and more. For more inquiries about the Affordable Care Act, contact ARCHER JORDAN at +1 888-745-0754.