Yesterday was a day that will go down in history! A landmark in my career! It was Lockton Benefit Group’s first ever Tweet Chat! That’s right folks, I’ve finally embraced this newfangled means of communication they call Twitter to share some ACA technology knowledge with the rest of the world. (#YOLO) I guest-starred as the resident ACA technology expert to answer questions related to the topic tweeted in by other Twitter users. You can see the conversation here or by searching #LocktonACA on Twitter.
Not really knowing what to expect, I was surprised with the amount of questions and even the content of some of the questions. The scheduled hour was filled with questions about the different ACA technology vendors and their offerings. There were also a few questions that were more compliance-related. Fortunately, Mark Holloway (an ACA compliance know-it-all around here) was able to jump in and offer some answers to those questions that were a bit out of my realm.
Here’s a quick summary of our Tweet Chat conversation:
Why we’re talking “technology” and “ACA” at the same time: The ACA imposes a variety of administrative obligations on employers. Every client of ours feels some ACA pain to some extent…the true extent of the pain depends on the employer’s size, the nature of the coverage it offers (insured or self-insured) and whether it employs “variable hour” employees. Employers may have to track employees’ hours of service over extended, 12-month periods, track time spent in waiting periods, report to the IRS (and covered employees) various periods of coverage, and report to the IRS information sufficient to demonstrate compliance with the employer mandate. All these obligations imply a need for a technology solution to handle them efficiently.
The types of ACA technology vendors: ACA technology systems fall into three camps- stand-alone IT systems; HR/Payroll and Time & Attendance vendors; and Benefits Administration vendors.
The best vendors: It depends! Different vendors and their offerings make better fits for different kinds of employers. Personally, I like the vendors that don’t disrupt other technology systems.
The worst vendors: ACA is new to all of the vendors, so not all products have been perfected yet. Some of the ERPs are struggling more, so they are partnering-up with stand-alone ACA systems. Non-SaaS vendors are also dragging.
How technology can help with the look-back period: Good technology can help employers readily prove the full-time or part-time status of their employees. Employers may use different measurement periods for (certain) different categories of employees. The ideal solution is a technology platform that can accommodate the employer with multiple business units and different measurement periods.
Not counting hours correctly: Not counting hours correctly can result in non-compliance with the ACA and therefore the penalties. To avoid potential penalties, the employer has to prove they offered coverage to full-time employees, which assumes the employer can correctly identify its full-time employees. For some employers, the ability to track hours and manage their workforce will be critical.
The time it takes to implement a new system: it varies on the vendor, but we are seeing 2 – 12 weeks, assuming good data at the start. The more time you can give to implement, the better the result. (Read our last blog post about this same issue.)
Cost for ACA only solutions: Prices range from $0.20 – $3.00 PEPM for full compliance support, depending on the system; many Time & Attendance vendors are providing “hours worked” reports for free.
Lockton’s ACA technology system: Lockton is vendor-neutral and does not offer a technology system. Our clients are too varied for the “one size fits all” path.
If an employee works for a company in a controlled group and gets a new job in a company in the group, does the initial measurement period reset? No, there is no reset if they transfer or take another job in the controlled group, unless there is a sufficiently long break in service.
If you missed out on this rip-roaring good time yesterday, make sure to check out the conversation. If you still have outstanding ACA technology questions, please tweet them to me or comment them below! Be on the lookout next month for LBG’s next Tweet Chat hosted by the Health Risk Solutions Practice.