Working Wednesday: Supreme Court Ruling on Health Insurance: Small Business Assistance

This blog will not be about the politics of the decision. Yes, I have an opinion. No, small business owners really don't have time to read my opinion or others. They have too many other things going on, like keeping the front door open and having a solid profit margin. So let's get to it, shall, we?

There may be some very small businesses that don't feel that they are part of the discussion. Wrong, and wrong again. You business owners are always part of the private business landscape and you count. You are a piece of the panoramic view and combined, small businesses make up approximately 80% of companies in America. You need to know what is going on in the private sector, in your business sector, and in your community. So read on.

Attracting good employees is not just about salary but about a benefits package. Most companies assume part of the package includes health coverage. Health coverage in this case is defined as eye, dental, and overall body health care.

Congress passed the Patient Protection and Affordable Car Act(PPACA) and the U.S. Supreme Court upheld the law. The Society of Human Resource Management(SHRM) has a few items that are worth exploring to help businesses. Please see: http://www.shrm.org/publications/hrnews/pages/courtupholdsmandate.aspx?homepage=mpc for a good summary as to what this means for employers.

SHRM called upon Mr. Gary B. Kushner, SPHR, CBP, president and CEO of Kushner & Company to address their members on this issue. He wrote:
"Organizations need to review their plans and seize this opportunity to create better strategies around their health plans, both in design and employee communication.
For human resource professionals, the message here is very clear — move forward with implementing and complying with PPACA, since major portions of it take effect in 2014 (a mere 18 months away) and other provisions take effect later this year and in 2013.
For example, many employers soon will be required to report the value of employer coverage on IRS Form W-2, and all employers must issue a summary of benefits and coverage. Employers who were waiting to begin planning on how to comply (or whether to even offer or continue to offer health coverage) need to begin performing quantitative and qualitative analyses on their plans.
More importantly, they need to begin looking at their health plans as part of an overall HR strategy for their organizations." 

He suggested these steps:
Key Steps Employers Need to Take Now to Plan for 2014:

1. Determine the strategic implications of whether or not to offer a plan. Health benefits are just one part of an overall total rewards strategy.  How does an organization’s having (or not having) health benefits impact other talent acquisition and talent management strategies?
2. Review the Supreme Court decision as to its impact on your organization.
3. If a plan is offered, perform a qualitative analysis on whether it makes sense to remain a grandfathered plan or become nongrandfathered by examining the seven PPACA provisions that apply only to nongrandfathered plans.
4. Perform a qualitative analysis to determine if existing plans meet qualifying eligibility and affordability standards.  In order for employers to avoid potential penalties, ensure that any health plans offered meet both standards.
5. Determine the true organizational costs of either offering or not offering health coverage after 2013.  For many organizations, this is not the "no-brainer" that it may at first glance appear.
6. Perform a quantitative analysis to project the so-called "Cadillac tax" set to begin in 2018

Take time to review your policies. Take time to ponder how to retain your best employees. Take time to think about how benefits fit into your business plan, possible expansion plan, and future recruiting plans. These have all changed now that the Court has upheld the law. Get with your contracted experts too such as your accountant, attorney, etc. for additional advice as you make your plans for the next couple of years. As listed above, you need to do this right away. Good luck.