Benefits July 11, 2017

Most Employers Do Not Want ACA Repealed Entirely

If the ACA employer mandate were repealed, 96% of employers surveyed would continue to provide health benefits for workers.
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Since the Affordable Care Act (ACA) replacement morphed into the American Health Care Act (AHCA) and now the Better Care Reconciliation Act (BCRA), access to health care could be changing, and employers are reacting to possible workplace impacts.

In Employer Pulse Check: The Future of ACA, the International Foundation of Employee Benefit Plans surveyed employers from across the country and found 71% would not like ACA repealed entirely.

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If the ACA employer mandate were repealed, 96% of employers surveyed would continue to provide health benefits for workers. Of the organizations stating they would discontinue coverage, 64% said it would be due to the high cost of health care coverage.

There are provisions in the ACA that employers support. Seventy-nine percent support the tax-favored status of employer-provided health coverage for employers; 76% support the tax-favored status of employer-provided health coverage for workers; and 74% support the mental health benefit parity (i.e., the same level of benefits as for other medical conditions).

In addition, 69% support expanded use/flexibility for health savings accounts (HSAs); 67% support the ban on preexisting condition exclusions; and 67% support increased wellness incentives as allowed under ACA.

Provisions of the ACA employers oppose include:

  • the Cadillac tax (excise tax on high-cost plans) – 85%;
  • premiums based on medical experience (i.e., insurers can charge sicker individuals more) – 65%;
  • the increased age-based premium differential between younger and older individuals (e.g., increased from three to five times) – 52%; and
  • the limit on health flexible spending (FSA) account salary reductions (i.e., $2,600 in 2017) – 48%.

Shan Fowler, senior director of Product Strategy at Benefitfocus, based in Charleston South Carolina, says while the Senate health care reform bill reduces costs and administrative burdens for employers, provisions affecting individuals and employees could cause a residual negative impact on employers and many have conflicted views about the bill.

Survey responses were received from 727 U.S. members of the International Foundation, representing organizations from fewer than 50 to more than 10,000 employees, and public employer/governmental entities, multiemployer benefit funds and corporation/single employer sectors. For access to the full results, visit www.ifebp.org/futureofaca.

Compliance July 11, 2017

PBGC Requests More Time to Collect Multiemployer Merger Information

The agency says it uses information submitted by plan sponsors under the regulation to determine whether mergers and transfers conform to the requirements of ERISA Section 4231.
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The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) extend approval of a collection of information contained in PBGC’s regulation on Mergers and Transfers Between Multiemployer Plans.              

The agency is requesting public comment on the collection of information.

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The PBGC’s regulation on Mergers and Transfers Between Multiemployer Plans sets forth the procedures for giving notice of a merger or transfer under Section 4231 of the Employee Retirement Income Security Act (ERISA) and for requesting a determination that a transaction complies with Section 4231.

The agency says it uses information submitted by plan sponsors under the regulation to determine whether mergers and transfers conform to the requirements of ERISA Section 4231 and the regulation. The collection of information has been approved by the OMB through July 31, 2017, and the PBGC is requesting that the OMB extend its approval for another three years.

Last year, the agency proposed a rule to facilitate mergers of multiemployer pension plans in order to implement changes under the Multiemployer Pension Reform Act of 2014 (MPRA).

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