Employee benefits compliance

Employee Benefits Compliance: Common ACA, ERISA, and COBRA Risks Employers Miss

Managing employee benefits involves more than choosing health plans and communicating enrollment information. Employers also need to follow rules that apply to their benefits programs. Missing an important requirement can create unnecessary problems for a business.

Staying organized can make these responsibilities easier to manage. Employers can review their compliance resources to understand key requirements and identify areas that need attention. Regular reviews, clear communication, and proper documentation can also help keep benefits processes on track.

Understand ACA Requirements

The Affordable Care Act (ACA) includes requirements that may apply to employers based on factors such as workforce size and the type of coverage offered. Employers should understand which requirements apply to their organization and make sure that important information is handled properly.

ACA compliance can involve reporting, notices, eligibility, and health coverage requirements. Reviewing these responsibilities regularly can help businesses avoid overlooking important details.

Employers can also work with employee benefits solutions to review their benefits strategy and identify areas that may require attention.

Keep ERISA Responsibilities in Mind

ERISA establishes requirements for many employer-sponsored benefit plans. Employers may need to provide plan information, maintain appropriate records, and follow their benefit plan’s terms.

Complete documentation is an important part of ERISA compliance. Businesses should keep their benefit documents organized and ensure employees receive the information they are entitled to.

Because requirements can vary by plan, employers should review their specific responsibilities and seek professional guidance when needed.

Do Not Overlook COBRA

When employees lose eligibility for certain employer-sponsored health coverage, COBRA may provide continuation coverage rights for eligible individuals. Employers and plan administrators need to understand the applicable notices and processes.

COBRA compliance can become difficult when employers do not communicate or handle employee status changes promptly. Having a clear process for qualifying events can help employers manage these responsibilities more effectively.

Review Compliance Before Open Enrollment

Open enrollment is a good opportunity to review benefit information, employee communications, and required notices. Employers can use this time to confirm that plan documents are up to date and that employees are receiving the information they need.

An open enrollment checklist can help businesses organize important tasks and prepare for the enrollment period.

Consider Additional HR Support

Benefits compliance can involve many different responsibilities, especially for businesses without a large internal HR team. Additional support can make it easier to stay organized and keep key processes on track.

Businesses can consider fractional HR support when they need additional help managing HR and benefits-related responsibilities.

Final Thoughts

Employee benefits compliance requires ongoing attention. Reviewing ACA requirements, keeping ERISA documents organized, managing COBRA responsibilities, and preparing carefully for open enrollment can help employers reduce the risk of missed requirements.

JS Benefits Group helps businesses manage their employee benefits and navigate important benefits-related responsibilities. Contact JS Benefits Group to discuss your current benefits strategy and compliance needs.

 

Author

  • Jennifer Schaefer

    Jennifer Schaefer, MBA, ChFC, SHRM-SCP – Employee Benefits Expert | HR Leader | Certified Corporate Wellness Specialist As founder & CEO of JS Benefits Group, Jennifer Schaefer has spent 30 years helping employers lower healthcare costs through level-funded and self-funded plan design, claims data analysis, and benefits programs that keep good people from leaving. She writes for the Forbes Business Council, co-hosts Executive Leaders Radio, and has been quoted in the Philadelphia Inquirer on employer health costs.

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