There is no area of employee benefits that receives more attention than welfare benefits—the package of medical coverage, dental coverage, disability insurance and a host of other benefits that an employer offers to its employees. While employers offer these programs for a number of reasons (to attract and retain employees, social responsibility), increases in health care costs and complexity should cause employers to continually re-evaluate their programs. The advent of the Affordable Care Act (ACA) or ‘Obamacare’, has made many employers reconsider whether having these types of programs is worthwhile.
There are many issues that an employer should consider when evaluating the operational efficiency and cost-effectiveness of its welfare benefit programs. Common issues that we see involve failure to comply with DOL and IRS reporting requirements, incorrect understanding of the impact of the ACA on a company’s programs, cost-sharing and intertia—‘we’ve done it this way for a long time, why should we change anything’.
Our compensation and benefits consulting practice can help employers analyze the cost effectiveness of their welfare programs, compare them to market offerings and navigate their way through the maze that ACA has created.
To view our recent webinar, Preparing for the Affordable Care Act, click here.