As we near the halfway point of 2015, it’s a good time to look ahead to the 2016 healthcare renewal season (open enrollment begins November 1). Specifically, is your current plan 1) in compliance with ACA; 2) cost-effective; and 3) being used to its fullest capacity by employees? Below is an overview of these three topics, including specific areas to consider as you evaluate the efficacy of your current offerings and decide how to move forward for 2016.
· Compliance: Three main areas to consider with regards to compliance are: grandfathered plans; Applicable Large Employer (ALE) status (what it means if it’s a new designation); and new IRS reporting requirements under Section 6056 (Forms 1094/195-C) for the 2015 tax year.
· Costs: For many organizations, 2016 renewals will bring double-digit increases. However, new broker models are quickly changing the employer-sponsored healthcare landscape, delivering more value than traditional avenues. With options like partially self-funded plans, HRAs, and innovative brokers like Nonstop, Zenefits, and Zane, employers can now offer improved benefits packages for employees while saving up to 12% in overhead expenses each year.
· Employee needs: Platinum or gold-level benefits can look great on paper, but if employees aren’t taking advantage of the perks, then they are wasted money. Before renewing plans for 2016, survey your employees to find out exactly what they want out of a healthcare plan (i.e. alternative/complimentary care, spousal and dependent support, fertility treatment coverage, lower out-of-pocket expenses). Developing customized offerings through a partially self-insured plan might help employers’ better meet staff needs while also saving money.
Stay tuned, we will break down each topic in more detail and provide guidance for next steps. In the meantime, for questions about how Nonstop can help you plan for the 2016 renewal season, please contact us.
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose