ACA Solution Package: ADPs Answer To Health Care Reform

Responding to the Affordable Care Act (ACA) requirements is no longer an option it is the law. However, trying to make sense of the complexities around ACA regulations can be overwhelming. That is why there is no better time than now to leverage the expertise and guidance of ADP. With such deep knowledge and a broad perspective on the way companies manage their human capital, ADP is uniquely positioned to help guide your company through the myriad of changes, and compliance provisions with the ACA. ADPs ACA Solution Package integrates payroll, HR, time management and benefits administration as a single source solution that can help you effectively and efficiently respond to requirements under the ACA. ACA Solution Package includes the following services and features that can help you meet the requirements under the ACA: BENEFIT PLAN ADMINISTRATION Method for communicating Uniform Summary of Benefits and Coverage FSA Limits Employee Notice of Exchange Waiting Period Identifiers Medical Loss Ratio (MLR) ROBUST ELIGIBILITY CRITERIA Highly Compensated Individual Identifier DEPENDENT & BENEFICIARY TRACKING Extension of Child Coverage to age 26 CARRIER CONNECTION Electronic Transactions Standards for Enrollment Eligibility Transactions Enrollment Transaction Premium Payments ADP COBRA Services ADP FSA Service INVOICE AUDITING & REPORTING Patient-Centered Outcomes Research Fee Report Employer Shared Responsibility PAYROLL AND TAXATION AND REPORTING Medicare Tax on Wages and Unearned Income W-2 Reporting of Healthcare Insurance Costs TIME AND LABOR MANAGEMENT Track Hours of Service Including Projected Scheduled Hours View and Adjust Work Schedules Ability to Set Threshold Notifications for Total Hours of Service EMPLOYEE ACKNOWLEDGEMENT Summary of Benefits Employee Notice of Exchange

Dependent Coverage
Employers must expand coverage for qualifying dependent children up to age 26. HOW ADP CAN HELP Configure the ACA Solution platform to apply age rules where applicable Provide open enrollment and life event enrollment tools to allow dependent children up to age 26 access to health and welfare plans Provide benefit plan setup template to track dependent age requirements HOW YOUR BUSINESS BENEFITS Reduces costs associated with ineligible plan participants Reduces premium overpayments Helps ensure compliance with coverage regulations

Medical Loss Ratio (MLR) Rebates

Employers must distribute MLR rebate dollars to all employees/former employees who were plan participants for that plan year, or spend the rebate on improving the effectiveness of their health and welfare programs. HOW ADP CAN HELP Provide the ability to set up the appropriate employee credit in order to provide rebate distribution to eligible employees as a percentage of plan contribution HOW YOUR BUSINESS BENEFITS Helps optimize rebate dollars most effectively to reduce total cost of healthcare

Summary of Benefits and Coverage (SBC)

Insurers and self-insured group health plans must provide SBCs for annual enrollments beginning on or after 9/23/12 and for other enrollments and upon request for plan years beginning on or after 9/23/12. HOW ADP CAN HELP ADP ACA Solution Package supports delivery of SBC electronically as well as obtaining acknowledgement from employees; clients can also print hard copy HOW YOUR BUSINESS BENEFITS Aids compliance with SBC requirements Helps reduce administrative burden of communicating SBCs to employees Empowers employees with access to coverage-related information

JANUARY 1, 2013
Medicare Tax on Wages and Unearned Income
Employers are required to withhold .9% on Medicare taxable wages in excess of $200,000 annually for all U.S. workers regardless of marital status or aggregate/outside income. HOW ADP CAN HELP ADP ACA Solution Package allows practitioners to generate a report in order to conduct analysis of payroll and deductions for high-income employees who may meet criteria for the new taxes HOW YOUR BUSINESS BENEFITS Increases employee satisfaction with highly compensated/executive associates on planning their taxes

JANUARY 1, 2013
Flexible Spending Account (FSA) Annual Limit
For plan years beginning on or after 1/1/2013, $2,500 limit applies to employee healthcare FSA contributions. HOW ADP CAN HELP Provide one-stop shop for all ADP healthcare spending accounts for 2013 open enrollment (FSA, HSA, HRA, etc.), including single debit card and mobile access HOW YOUR BUSINESS BENEFITS Aids compliance with FSA requirements Helps reduce administrative burden of communicating FSA limits to employees Boosts employee engagement by improving communication Helps reduce benefits costs via consumerdriven or high-deductible health plans, while consolidating multiple spending account vendors

JANUARY 31, 2013

Form W-2 Reporting
Employers with 250+ W-2s in calendar year 2011 must include value of group health coverage provided to employees on Form W-2 beginning in 2012 tax year. Employers must also confirm payroll system is set up to track and include this figure on W-2s when printed in January. One entry will show total costs for both employee and employer. HOW ADP CAN HELP ADP ACA Solution Package gives practitioners the ability to determine which benefit plans should be included in the Group Health Insurance Costs calculation for the W-2 Group Health Insurance Costs reporting is available for practitioners to generate and review the costs associated with each employee by benefit plan HOW YOUR BUSINESS BENEFITS Aids compliance with W-2 requirements Helps reduce risk of penalties for incorrect W-2s (i.e., $50 per) Helps reduce client practitioners administrative burden of year-end payroll processing and validation

MARCH 1, 2013 (Postponed)

Employee Notice of Exchange
Employers must provide current employees with notice describing availability of exchange coverage. Notice must be provided upon hire for employees hired after 3/1/2013 (postponed).1 HOW ADP CAN HELP ADP ACA Solution Package supports delivery of Notice of Exchange electronically as well as obtaining acknowledgement from employee; client can also print hard copy. HOW YOUR BUSINESS BENEFITS Aids compliance with exchange notice requirements Helps reduce administrative burden of communicating exchange option to employees Empowers employees with access to Employee & HR Service Center
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On January 24, 2013, the Department of Labor (DOL) announced that the notice requirement will not take effect on March 1, 2013. The DOL expects that the timing for distribution of notices will be the late summer or fall of 2013, which will coordinate with the open enrollment period for Exchanges.

2013/2014 (Pending guidance may impact effective date and type of services)
Automatic Enrollment and Nondiscrimination Rule
Employers with 200+ full-time employees must automatically enroll new employees in employers group health plan. Insured employer group health plans may not discriminate in favor of highly compensated employees. HOW ADP CAN HELP2 Automatically enroll new hires into employer group health plans Report exceptions on enrolled employee population
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HOW YOUR BUSINESS BENEFITS Aids compliance with automatic enrollment and nondiscrimination requirements

Functionality pending.

1/1/2014

Annual Dollar Limits and Waiting Periods/Pre-Existing Condition Exclusions

For plan years beginning on or after 1/1/2014, employer group health plansmay not impose annual dollar limits on essential health benefits, waiting periods of longer than 90 days, or pre-existing condition exclusions. HOW ADP CAN HELP Provide new hire reports (up to 90 days) to validate employment status (part/full-time, on leave of absence) and change triggers to ensure appropriate benefits enrollment HOW YOUR BUSINESS BENEFITS Helps mitigate excessive costs based on employment status Aids compliance with FLSA rules

1/1/2014
Wellness Incentives
For plan years beginning on or after 1/1/2014, permitted wellness incentives increase from 20% of cost of coverage to 30%. HOW ADP CAN HELP Provide access to a wellness portal and biometric screening HOW YOUR BUSINESS BENEFITS Reduces employer costs of healthcare, improves employee engagement and accountability for healthcare costs Gains access to wellness best practices and business case templates for investment

1/1/2014

Employer Shared Responsibility

Employers with 50+ FTEs and/or equivalents must offer affordable, minimum essential coverage or be subject to tax penalties. Options include: Offering traditional group health plan coverage for all employees, with minimum essential coverage (60%+ of actuarial value), while employee costs are capped (9 % of household income) Offering no medical coverage Offering medical coverage for some but not all employees HOW ADP CAN HELP Provide tools for the practitioner to conduct analysis of employees purchasing benefits from employer to see if costs exceed 9 % of W-2 wages Assist with identifying plans that are minimum essential coverage (60%+ of actuarial value) Track employees who have waived benefit coverage and reason Provide tools to assist with annual reconciliation of the penalty bill against benefits and W-2 data, enabling client to request W-2 corrections or initiate penalty appeals process3
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HOW YOUR BUSINESS BENEFITS Helps mitigate risk related to cost of benefits and employee burden levels Aids compliance regardless of company size Helps reduce practitioners administrative burden in determining wage levels

Subject to employee line item data availability in penalty bill.

Regardless of what stage your company is in - every business will require some level of help to get through ACA. ADP is the one partner who can support your needs at any level. Dont waste your time, people and money trying to figure it out contact ADP today.

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