Employers Not Prepared for Affordable Care Act
A new ADP Research Institute survey shows that most HR and benefits decision makers feel that the landscape of U.S. healthcare is experiencing a radical change, with many expressing a lack of confidence that their organizations fully understand the Affordable Care Act (ACA) and its implications for American businesses.
“The ADP Research Institute’s recent survey clearly shows that confusion and lack of preparedness surrounding ACA provisions is a widespread issue for U.S. companies of every size, although small and midsized companies seem particularly challenged,” said Jan Siegmund, Chief Strategy Officer of ADP. “For example, our study shows that half or more of small and midsized companies are unprepared to meet the newly-required summary of benefits and coverage required by the ACA.”
According to the survey, only 40 percent of respondents from organizations with over 1,000 employees are very confident that their organizations understood ACA requirements and the new responsibilities required under the law. Small and mid-sized companies fared even worse with only 20 percent and 17 percent of respondents expressing high confidence, respectively. Most HR decision makers at small and mid-sized businesses also reported that they were not aware of the new employee notification requirements regarding public exchanges required by the ACA with 67 percent and 62 percent indicating uncertainty, respectively. About one-third of respondents from large organizations reported to being unaware of the same upcoming requirements. As far as preparedness goes for providing the newly required benefits and coverage summaries to employees, about two-thirds of large companies, one-half of mid-sized companies, and one-third of small companies reported to being prepared.