Marsh & McLennan Companies, Inc. : Supreme Court's Decision Puts Pressure on Employers to Implement Health Law's Provisions or Face Penalties, Says Mercer
06/28/2012| 11:50am US/Eastern
Recommend:
-
Employers should move forward with implementation or expect to pay
penalties
-
Law still faces contentious political outlook
In a landmark decision, the US Supreme Court has upheld the health care
reform law's individual coverage mandate and left virtually all other
provisions of the law intact. The court's validation of the individual
mandate removes one of the major uncertainties plaguing the legislation,
which still faces a contentious political outlook. But employers should
stay on track in their efforts to comply with the law as enacted or face
penalties, advises Mercer, a global human resources consultancy.
"The Supreme Court's ruling removes a major source of uncertainty
surrounding this important national issue. With all of the law's
provisions still in place, employers will need to redouble their
compliance efforts, especially regarding such immediate requirements as
providing summaries of benefits and coverage to their employees," said
Julio A. Portalatin, President and CEO of Mercer. "This decision also
reinforces the continuation of such popular features as coverage of
dependents up to 26 and elimination of preexisting condition exclusions."
The individual mandate, which has sparked fierce political and legal
debate, requires most Americans to have adequate health coverage
starting in 2014 or pay a penalty. Also in 2014, employers that fail to
offer full-time employees and their dependents affordable coverage with
a minimum value likewise will face penalties.
"Employers can expect a spike in plan enrollment for 2014 as a result of
the individual mandate," said David Rahill, President of Mercer's Health
and Benefits business. "But they may see enrollment level off once the
state exchanges become operational."
By 2014, health insurance exchanges will be operating in every state,
offering community-rated insurance to certain small employers and
individuals, with federal premium tax credits available to help some
people buy that coverage.
In the near term, employers also must report the value of employer
coverage on IRS Form W-2, cap dollar limits on health care flexible
spending arrangements, and increase Medicare withholding for high
earners (those earning more than $200,000 per year). They must also
comply with the reforms already in effect, such as coverage of
dependents up to age 26.
"But first and foremost, employers must estimate how the law will affect
their business," said Sharon Cunninghis, Senior Partner and leader of
Mercer's US Health and Benefits business. "Any employers who have not
yet conducted a 'health care reform check-up' should make that their
first order of business. Employers also should continue to monitor
actions of Congress and Administration, especially in light of the
November elections."
Mercer consultants will provide immediate reactions to the possible
implications of the ruling for employers during client webcasts
scheduled for June 29 at 2 p.m. Eastern and July 2 at 3 p.m. Eastern. In
addition, another webcast will be held on July 12 at noon Eastern to
provide a "deeper dive" into how the Supreme Court's decision will
affect employers going forward. Click here to register for any of these
webcasts: http://www.mercer.com/webcasts/1466095?idSession.
About Mercer
Mercer is a global leader in human resource consulting and related
services. The firm works with clients to solve their most complex human
capital issues by designing and helping manage health, retirement and
other benefits. Mercer's 20,000 employees are based in more than 40
countries. Mercer is a wholly owned subsidiary of Marsh
& McLennan Companies (NYSE: MMC), a global team of professional
services companies offering clients advice and solutions in the areas of
risk, strategy and human capital. With 52,000 employees worldwide and
annual revenue exceeding $10 billion, Marsh & McLennan Companies is also
the parent company of Marsh,
a global leader in insurance broking and risk management; Guy
Carpenter, a global leader in providing risk and reinsurance
intermediary services; and Oliver
Wyman, a global leader in management consulting. For more
information, visit www.mercer.com.
Follow Mercer on Twitter @MercerInsights.
Mercer
Stephanie L. Poe, +1 202-331-5210
stephanie.poe@mercer.com
© Business Wire 2012
Recommend :
