Seven Ways the Affordable Care Act Impacts Your Association

The Affordable Care Act (ACA) brings significant changes to the responsibilities of employers in offering healthcare coverage. While you might already be familiar with its effects as an employee or business owner, there's more to consider if you're a board member of a community association. The ACA's influence extends to associations, affecting how they interact with vendors and service providers. Preparing for these changes is crucial, and consulting with professional counsel can guide you through the process.

1. Get Informed

Understanding the ACA might not be entertaining, but there are resources that break it down for you. The U.S. Department of Health and Human Services provides a straightforward overview of the ACA on their website. Taking a moment to explore these materials can give you a solid grasp of the basics.

2. Anticipate Increased Contractor Costs

The ACA mandates that companies with 50 or more employees must offer health benefits, potentially raising costs for service providers. This means your association might face higher fees, especially from companies providing valet or security services. If your bills increase, it's likely due to these new requirements.

3. Plan for Higher Fees Now

While you might be unable to avoid increased costs, staying with your current service providers could be beneficial. It's wise to proactively inquire about possible rate hikes in advance. Early awareness enables you to budget accordingly and avoid unexpected financial shortfalls. If your property management company is proactive, they might already be planning for future budget implications.

4. Self-Managed Associations Will Experience Changes

For self-managed associations with 50 or more employees, the ACA’s effects are immediately felt. Even smaller associations are impacted. As everyone is required to have health insurance, you might lose employees to larger firms due to self-payment concerns. With unemployment decreasing, the job market will become more competitive. Consider ways to retain your employees to prevent turnover issues.

5. Confirm Contractor Compliance

Ensuring your service providers comply with the ACA is essential. Legal counsel for the association can assist with this verification. It's important to be thorough and verify that all aspects of compliance are being met by those you contract with.

6. Educate Your Employees on Healthcare Requirements

If your association needs to offer ACA benefits, it's vital that your employees understand their coverage obligations. They must have insurance, either through your plans or elsewhere. Individuals face penalties for lacking coverage, so clear communication about these requirements is essential. Avoid surprises by ensuring everyone is informed ahead of tax season.

7. Offering Excellent Benefits Can Be Strategic

The ACA poses two significant challenges: ensuring everyone is insured and retaining quality employees. Offering a comprehensive benefits package, including healthcare and retirement plans, can address both issues. These benefits not only meet legal requirements but also attract and retain top talent in your organization.

These suggestions are intended to help you navigate the changes brought by the ACA. However, they are not a substitute for legal advice. For any legal concerns, it's advisable to collaborate with your association's legal counsel.