Obama Care - Prepare or Beware

How amazing,!!! I post this blog and Obama backs off on the implementation date. Coincidence ?     (I don't think so)

Are you tired of hearing about the onerous provisions of the new health care regulations but still struggling to figure out the organization’s strategy in response to Obama Care. If so, let me provide you with some insight.

As you know, a significant impact of the new health law will be felt in 2014. If that means your firm must have insurance coverage you need to begin the process in October of 2013 to satisfy the open enrollment restrictions. So, by any stretch of the imagination, you don’t have much time to get your act together. However, if your firm will have 50 qualified employees in 2014, you have three basic options:

1.      Comply with the law and provide the appropriate insurance coverage for the employees and their child dependents. If you do not offer such insurance now and your firm employs 100 full time employees, it is expected that your company will need to increase sales by $5,000,000 to achieve the same level of profit in 2014 as compared to 2013.

2.      Do not comply with the law and face penalties The penalty in most cases is $2,000 a year for every full time employee minus 30. You do the math.

3.      Do not comply, do not provide insurance and do not pay any penalties Yes this is a possibility and highly probable. HRA has constructed a series of strategies that will protect employers from the onerous cost impositions associated with Obama Care.

Now that you know the options, I encourage you to contract with HRA to assess the various alternatives that apply to your firm based on the organizations risk tolerance, financial situation and business priorities. We have uncovered several strategies that can save companies tens of thousands of dollars each year.

For example, one of our clients in the bio tech industry, exhibit two interesting characteristics. A) They employ a young work force, and B) they pay employees very good wages. As a result, HRA constructed a rather attractive health care plan. Due to the high cost of the available insurance premium, most employees declined to participate in the plan since they did not feel they needed health care coverage and the financial penalty associating with declining coverage was insignificant to them. As a result, the cost of supplying insurance as an employee benefit was low and the firm will avoid any penalties.

Whichever option you choose, HRA will guide the transition and protect you from penalties. HRA will:

• Research and identify the alternatives associated with each option
• Assess the pros and cons of each alternative including costs, savings and risks
• Recommend the best course of action based on your business priorities
• Assist with implementing and managing your decision
• Provide support, guidance and answer questions

HRA’s fee to evaluate the business alternatives is 20% of the avoided cost in health premiums for a year. As a result, the savings could be as high as 80% of your cost in health premiums for a year or up to a 500% ROI). But wait, as they say in the commercial, it gets even better:

•        If you choose to offer insurance and allow us to broker the new insurance plan, HRA’s fee will be discontinued.

•        If you choose to risk penalties, our fee will qualify for a credit up to the amount of any penalties that exceed our forecast.

Therefore, our offer includes virtually no risk, only the upside knowing that your business has examined the alternatives and has made good business decision in light of the new law. Furthermore, HRA will be available to assist with the ongoing administrative burdens associated with these regulations as well as any human capital management need that arises.

In summary:

•        HRA will explain your options

            •        HRA will save you money
            •        HRA will reduce your administrative burdens
            •        HRA will address legal and regulatory compliance concerns
            •        HRA will determine if your organization qualifies for health care tax credits  
            •        HRA offers an attractive ROI
            •        HRA becomes your human capital management partner
            •        HRA offers peace of mind and will work with your trusted advisors (CPAs, Attorneys, etc.)

If you have any interest in exploring your options under Obama Care or need assistance with any HR related issue, we encourage you to reach out to HRA at 818 970 0730 or via email at hralliance@att.net

 

We also encourage you to visit our web site at www.hralliance.biz for more information on our range of HR related services, solutions, and savings.

 

From Michael Salisbury, Principal of the Human Resource Alliance (HRA)