WorldatWork, a nonprofit human resource association, turned in a comment letter to the Internal Revenue Service Department of Health and Human Services regarding the proposed regulations to oversee employers' shared responsibility or pay-or-play provisions as part of the Patient Protection and Affordable Care Act.
Members of WorldatWork created a focus group to contribute to the association's letter. In accordance with PPACA, all large employers must offer affordable health care coverage to their employees as well as their dependents or pay penalties starting in 2014. Among the top concerns are surrounding the definitions and measurements of new full-time employees, the look-back measurement method for new variable hour and seasonal employees, and employees rehired following termination of employment.
"Due to the unique nature of companies, work forces, industry sectors and business models, it's very difficult for one-size-fits-all definitions and recommendations to work for all organizations in terms of counting hours and determining eligibility for health care benefits," says Cara Woodson Welch, vice president of policy and public affairs of WorldatWork.
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There are worries among benefits professionals that the regulators may change the rules in the future once companies make significant investments to update their systems to comply. This letter encourages regulators to allow employers plenty of time to change their health care plans, payroll, communications and open enrollment procedures.
"The Department should be cognizant that for many employers tracking of hours to comply with the Affordable Care Act will require a change in programming and current systems, which could be administratively complex," Welch says. "As new health care provisions are enforced, WorldatWork strongly advocates that employers should not be burdened with excessive penalties if they can demonstrate that they are working diligently and in good faith to comply with the law."
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