Why Obamacare Means Americans Need 2 Jobs to Stay Afloat

Employment Expert Explains Why Obamacare Has Led To Job Losses And Slashed Hours

Under the Affordable Care Act, companies with 50 or more employees are required to provide health insurance to their staff if these employees work 30 hours or more a week.

Rob Wilson, President of Employco USA, says, “Since many companies cannot afford to provide health insurance for their staff, employers have instead opted to cut their employees’ hours so that they can limit their number of full-time staff and avoid costly health insurance plans. That means that many families will be forced to have working parents with not one but two jobs…and still no insurance!”

The bad new doesn’t end there, according to Wilson. As companies hunt for the most affordable plans and try to juggle all these new costs, something has to give.

Wilson explains, “To save money, employers might select an insurance plan that has higher out-of-pocket spending or even an insurance plan that does not place a cap on individual spending. This means that employees might now get stuck with a high-cost insurance plan for the next year, potentially spending thousands of dollars out-of-pocket on their healthcare.  Numerous organizations have already seen their out-of-pocket expenditures skyrocket, and everyone from college students to families have seen their healthcare costs become an expensive luxury…if not completely unaffordable.”

Obamacare Could Lead to Hefty Premium Increases in Illinois and Other States

Employment expert explains what Illinoisans can expect in 2016
Numerous health insurers are seeking approval for rate increases in 2016. Illinois will certainly be one of the states that are affected by these premium hikes. In fact, Blue Cross and Blue Shield of Illinois is asking for an average 29 percent increase for their plans. Pennsylvania, New Mexico, Tennessee, Maryland and Oregon will request similar increases.
Rob Wilson, CEO of Employco USA, says, “It is no wonder that so many health insurers are seeking rate increases. This is the major concern that people had when Obamacare was first introduced to the nation. The reality is that money doesn’t come from nowhere: Someone was going to have to pick up the tab for the millions of Americans who are newly insured under the Affordable Care Act, and sadly, that is going to be the American people.”
The new rates will not be approved and finalized until early October. “Currently, the new premiums are still up in the air,” says Wilson, “We don’t yet know how much rates will go up or which insurers will offer the most cost-affordable plans. November 15 is the date when people can begin to sign up for new plans, so after the rates are announced, people will have some time to research their options and discover if they can still afford their current plans.”
Wilson continues, “Unfortunately, these increases are exactly why people were strongly opposed to Obamacare from the beginning. It’s not fair that the average American now has to carry the tab for the mistakes made by millionaires on Capitol Hill.”

Play or Pay: Two New Tax Forms Require Extensive New Data from Employers

Employment expert explains what employers need to know about 1094 and 1095 forms

The Affordable Care Act has changed the face of healthcare in this country, and it has also changed the way that employers manage employees’ healthcare. Under the “Play or Pay” or “Shared Responsibility” mandate, companies with over 100 employees are now required to file the new 1094 and 1095 forms with the IRS. Employers who fail to comply will be subject to tax penalties of up to $3,000 per worker.

Rob Wilson, CEO of Employco says, “These new reporting forms are a departure from the norm for most HR professionals and are very detailed and complex. We were hoping that the IRS would find a way to simplify the instructions. Instead of filling out the total amount spent on healthcare on the W2, it is now required to submit a form on behalf of every employee. You must show how many hours employees have worked and how much was spent on healthcare each month. One of these forms (1094) goes to the IRS, while the other (1095) goes to employees like a traditional W2.”

The mandate requires a fair amount of data that employers might not have been tracking up until this point.  “Many traditional HR professionals do not have access to these new forms, resulting in a growing need for companies to outsource this government requirement,” Wilson says, “It is just one of the many ways that this administration has changed the way that American companies do business.”

This new system poses two major problems; companies will have to retrieve all of the data that is required in order to successfully complete these forms; and the compliance costs associated with obtaining this information.  “When companies all over the country begin to realize what exactly is needed and how much outside agencies are charging to complete these forms for them, many will be outraged.”

“We have heard from a number of sources that agencies will be charging extremely high fees to complete the forms on their behalf. We will not be charging our clients for this service because it is a part of what we do. As a full service HR outsourcing agency, we have direct access to this information. This is just one of the many services we provide to help eliminate these tedious, yet mandatory administrative tasks for businesses of all sizes. Companies who outsource their HRO/PEO to a number of vendors and not just one solutions provider, might get hit the hardest under this new mandate. We are aware of the failure to comply penalties, so we will do everything in our power to protect our clients,” says Wilson.