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Midsize Organizations Express Concern Over ACA Compliance in 2016

Feb 29, 2016

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In 2015, ADP conducted a survey of executives from mid-market organizations (50-999 employees) and the challenges they are facing in today’s business climate. Not surprisingly, concerns around the ACA were high on the list, more than likely for those organizations with 50-99 employees that will be required to comply with the ACA’s “pay or play” employee mandate for the first time in 2016.

While 60 percent of surveyed executives believe that their organization will handle all aspects of ACA compliance competently in 2016, 75 percent don’t have “extreme” confidence that their teams fully understand all the ins-and-out of ACA regulations. In addition, according to the survey “less than half feel they are extremely or very prepared to effectively manage the complexities of eligibility and affordability requirements.” As a result, the lack of internal resources and expertise about the complex legalities of healthcare can significantly impact the outcomes for organizations and result in unexpected penalties.

Nonprofits especially may be lacking both in internal resources and the funds to hire external resources to fill in the gaps. At the same time, the risk of ACA penalties can loom large over already constrained overhead budgets. For HR and financial departments, it likely feels like walking a tightrope at all times to ensure affordable healthcare is provided in the most compliant and least restrictive way.

As such, seeking out resources that can provide guidance on affordable ACA compliant plans, meeting eligibility requirements, and the integration with other systems is a crucial step for nonprofits that are worried about getting and staying in compliance with the ACA in 2016. The first step is an internal audit of the organization’s knowledge-base and gaps around the ACA to determine what support is specifically needed. From there, its is recommended that independent sector organizations look for healthcare companies/brokers with expertise in nonprofit healthcare challenges to help guide them through the process. 

Going one step further, for nonprofits that are up for mid-year healthcare renewal in July 2016, this is a great time for an in-depth evaluation of current broker representation and healthcare plan(s), and to determine if they are serving the organization in the most effective and compliant way. For more information about ACA eligibility and compliance specifically for nonprofit applicable large employers (ALEs), start by downloading our guide: 

Three Steps Nonprofits Should Take
Before Renewing Healthcare Plans

Download The Guide!



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. This communication does not constitute a legal opinion and should not be relied upon for any purpose other than its intended educational purpose.

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