Why ACA Compliance Should Be Part of Every Broker’s Toolkit

The Affordable Care Act (ACA) has revolutionized healthcare in the U.S. by providing access to affordable insurance coverage. However, this sweeping legislation also comes with complex compliance requirements that employers must meet to avoid penalties. For brokers working with businesses and organizations, understanding and managing ACA compliance is crucial. Offering ACA compliance services should, therefore, be an essential part of every broker’s toolkit.

One of the leading solutions for ACA compliance is ACA-Track, a comprehensive tool that helps brokers navigate the complexities of ACA compliance, ensuring their clients remain compliant while avoiding costly penalties. Below, we explore why ACA compliance should be a cornerstone of any broker’s offering and how ACA-Track can streamline the process.

The Importance of ACA Compliance for Employers

The ACA, signed into law in 2010, created new obligations for employers regarding health insurance coverage for their employees. For certain employers, known as Applicable Large Employers (ALEs), these responsibilities include offering “affordable” health coverage that meets minimum value standards. Employers that fail to comply face penalties that can add up quickly.

The ACA includes requirements such as:

• Reporting employee health coverage to the IRS (Forms 1094-C and 1095-C).

• Offering health insurance to full-time employees (those working 30 hours or more a week).

• Tracking employee hours to determine full-time status, especially for variable hour and part-time employees.

• Avoiding penalties for non-compliance, which can result in significant fines.

For brokers, the potential penalties for non-compliance can create a serious risk for their clients. For example, if an ALE does not provide health insurance or offers insurance that is not affordable, it may be required to pay an Employer Shared Responsibility Payment, which can amount to $2,000 per full-time employee (excluding the first 30 employees). The penalties can escalate, especially if the employer files incorrect forms or misses deadlines for ACA reporting.

Why ACA Compliance Should Be Part of Every Broker’s Toolkit

1. Increased Demand for ACA Expertise

As healthcare requirements evolve, so too does the complexity of compliance. Employers are increasingly looking for brokers who can provide solutions not only for benefits and insurance but also for ensuring that their health plans meet ACA requirements. Brokers who can offer ACA compliance services will stand out in a competitive market.

The task of ACA reporting is complicated, involving various steps such as collecting employee data, tracking hours worked, verifying coverage offerings, and completing IRS forms. Brokers who can manage these tasks effectively give their clients peace of mind, knowing that their ACA compliance is in good hands.

2. Mitigating the Risk of Penalties

Failing to comply with ACA regulations can lead to serious financial consequences. The IRS has strict rules about reporting and health coverage, and penalties for late filings or incorrect reporting can be substantial. Brokers can reduce the risk of these penalties for their clients by offering ACA compliance solutions. For example, ACA-Track provides an easy-to-use platform for ensuring accurate and timely ACA reporting.

3. Streamlining the Process

Tracking employee hours, monitoring eligibility for health insurance, and completing all the necessary paperwork can be time-consuming and confusing. Without the right tools, employers can easily make mistakes, leading to fines and compliance issues. ACA-Track streamlines the ACA compliance process by automating the tracking of employee hours, monitoring eligibility, and providing the necessary reports for the IRS.

4. Avoiding Costly Mistakes

One of the most important reasons for brokers to integrate ACA compliance into their services is to help clients avoid mistakes that could cost them thousands of dollars. ACA-Track offers features like monthly audits of Form 1095-C line codes and tracking of variable hour employees, which help ensure that the data being reported to the IRS is accurate and up-to-date.

ACA-Track: A Proven Solution for ACA Compliance

ACA-Track is an all-in-one ACA compliance platform that simplifies the process of ACA tracking, reporting, and monitoring. Here’s how ACA-Track can help brokers and their clients stay compliant:

1. Comprehensive ACA Tracking and Reporting

ACA-Track provides a comprehensive solution for monitoring employee hours and reporting on employee eligibility. It tracks full-time, part-time, variable-hour, and substitute employees across multiple systems, including payroll, time-keeping, and HRIS. This ensures that brokers and employers have accurate data on hand to determine whether they need to offer coverage to specific employees under the ACA.

ACA-Track simplifies reporting with tools like:

• 1094-C and 1095-C Reporting: Electronic filing of ACA forms to the IRS.

• State and Federal Reporting: ACA-Track generates all required reports for both state and federal compliance.

• File Submission: The platform allows for secure and accurate XML file submissions to the IRS.

2. Error Fixing and Data Integrity

Incorrect ACA reporting can lead to fines and penalties, especially if the forms are filled out incorrectly or if data is missing. ACA-Track ensures that any errors in ACA reporting are caught before submission. The software offers a monthly line code audit of Form 1095-C, helping identify and fix mistakes early.

3. User-Friendly Dashboard

The ACA-Track dashboard is customizable and intuitive, allowing brokers and their clients to view the most important compliance data at a glance. With a snapshot summary feature, brokers can monitor employee eligibility, coverage offerings, and any errors with ease. The ability to filter and group data based on employee status, location, or ACA status makes it simple to navigate even large datasets.

4. Real-Time Alerts and Notifications

ACA-Track provides real-time alerts to ensure that employers stay on top of employee eligibility and compliance deadlines. If an employee reaches the eligibility threshold or if there’s a discrepancy in coverage, the platform will notify brokers and employers ahead of time, preventing last-minute issues.

5. Security and Compliance

ACA-Track is built with robust security measures in mind. The platform is certified under the SSAE 16 standard and SOC 2 Type 2 compliant, ensuring that all sensitive data is encrypted and securely transmitted. As a cloud-based solution, ACA-Track also benefits from continuous updates and adherence to the latest ACA regulations.

6. Dedicated Client Success Support

For brokers who are new to ACA compliance or need extra assistance, ACA-Track offers dedicated Client Success Advisors. These experts provide hands-on support, helping brokers manage ACA compliance for their clients. Whether it’s guidance on form submission or help with troubleshooting, ACA-Track’s team ensures that brokers have the tools and knowledge to succeed.

Conclusion: ACA Compliance is a Necessity for Brokers

In today’s complex regulatory environment, brokers must offer more than just insurance advice. ACA compliance has become an essential part of the benefits landscape, and brokers who fail to provide these services could risk losing clients to competitors who offer comprehensive solutions.

With tools like ACA-Track, brokers can confidently manage ACA compliance for their clients, ensuring that they avoid penalties and stay ahead of the constantly changing regulations. By integrating ACA compliance into their toolkit, brokers can add tremendous value to their clients, ensuring they remain compliant and focus on growing their businesses without worrying about costly ACA violations.

Adopting ACA-Track is a step toward simplifying the ACA compliance process, reducing errors, and ensuring that every client remains fully compliant with the ACA’s rigorous requirements. It’s a solution that benefits both brokers and their clients, streamlining processes and protecting against penalties in the process.

The time for brokers to integrate ACA compliance into their services is now. ACA-Track offers a proven, reliable, and cost-effective way to achieve compliance and provide exceptional service to clients.