ACA Audits Compliance Readiness – It’s about to get real
The Affordable Car Act (ACA) is the most sweeping overhaul of the U.S. health care system since the passage of Medicare and Medicaid. It significantly effects operations, finance, and compliance in organizations of all size.
To ensure ACA compliance by employers the IRS is kicking it up a notch by implementing a new multi-million dollar audit system to scrutinize employers’ ACA reporting efforts. Smaller employers could now be the most vulnerable for them. This in addition to 5500, HIPAA, GINA and all the other regulations to keep up with as an employer.
With only a short 10-15 days to respond to an audit request—it’s critical that employers act now before the auditors come knocking. Achieving and reporting ACA compliance can be a very daunting task for businesses. Even with dedicated legal and HR departments, many organizations struggle to offer their employees the required level of healthcare benefits, while avoiding IRS penalties. In fact, studies show that although employers have known about ACA reporting requirements for almost two years, most internal auditors feel unprepared to assess and mitigate the associated risks with the implementation of the ACA across their organization.
So What have employers been doing these past two years? Many have been looking for partners and vendors that can help them all the complexities—including complicated forms and instructions—to get their reporting right. Others simply delayed putting tracking processes, systems, and people in place, hoping the ACA with all its requirements and implications would just go away. As a result, countless employers are now scrambling to accurately report ACA compliance.
Focusing on reporting is smart because even though an employer complies with ACA regulations, inaccurate compliance reporting could trigger newly-expanded IRS scrutiny for verification audits and investigations—and leading to what could be staggering penalties. (Think millions.) Health and Human Services, the IRS and the Department of Labor can impose a number of different penalties and punishments for ACA non-compliance or poorly executed compliance reporting. These penalties will be at the very least a financial blow to most organizations, and could put the whole businesses at risk.
A health and benefits consultant specializing in ACA audits will work with you to ensure your organization’s compliance with both the ACA benefit obligations and reporting requirements.
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