WASHINGTON-The Supreme Court's decision last week to uphold President Obama's healthcare law may have a number of employers-including some credit unions-playing catch-up.
That is a key concern of CUNA Mutual Group, which told Credit Union Journal that many companies were either counting on the Patient Protection and Affordable Care Act to be deemed unconstitutional and thrown out, or were waiting for the Supreme Court's ruling to see what steps they need to take to get themselves into compliance.
"There are requirements that have been in effect for the past two years," reminded Brad Pricer, CUNA Mutual human resources process leader and a recognized expert on health and welfare plans. "One of the first things credit unions need to do is take stock of what have they have done to get themselves into compliance, making sure that all things are accounted for. I am not saying this is a large number of credit unions. I have been working with many credit unions that are prepared."
Pricer explained some employer requirements of the new healthcare law are around W2 recording. "We have a list and timeline on our website of all those requirements that have gone into effect starting in 2010." That timeline can be found at www.cunamutual.com/portal/server.pt/community/health_care_reform/543/health_care_reform/685412.
Pricer insisted that not only do CUs need to look back but must also start looking forward, too, especially since 2014 is the deadline for businesses with 50 or more employees to comply with rules requiring healthcare be offered or pay penalties. Pricer urged CUs, too, to carefully read through the healthcare law, as there may be certain opportunities that can be leveraged, such as much greater flexibility in healthcare plan funding options.
It has been widely agreed among the CU community that the new healthcare law presents both challenges and opportunities. In previous CU Journal reports, several small credit union CEOs have stated they need relief from rising healthcare premiums, and that any change is welcome, while others feared the healthcare mandate.
Though some have suggested that the law may prevent some small credit unions that don't provide insurance from growing, Pricer cautioned CUs that currently do not offer employee healthcare to not make a quick decision, and weigh the option of absorbing the penalties. "The penalties as they stand today are not that significant. It might make more financial sense to not offer healthcare, pay the penalty, and have your employees go to a public exchange. But be careful in what that decision may do to your human capital. If you want to be an employer of choice, that may not be the best decision."
Experts, too, have shared concerns that the new healthcare structure encourages more competition but does not really address bringing down cost (CU Journal, Nov. 16, 2009). But Pricer thinks a big area of opportunity may come from greater plan choice as private healthcare exchanges pop up in competition with the public exchanges.
"Private exchanges could leverage technology to put numerous plans in place that a plan sponsor could buy into and have their employees pick which coverage type is best for them," said Pricer.
