I wanted to title this – “The most boring post ever!” But you guys know I couldn’t write a boring post!
Going through my debrief of HR Tech and I had a meeting with ADP regarding health care reform compliance. Yes. It was as boring as it sounds! But there’s a catch, this is stuff that the real HR folks are really concerned about, especially small and medium sized HR shops (50 – 999 employees). Let’s face it, we don’t have the staff or budget to really feel 100% confident we know what we really need to be doing! It’s something that can make us look like fools to our executives. So, I wanted to pass along some stuff I think might help.
ADP has data coming out of their ears! They surveyed our executives in the SMB space and here’s what they are saying:
- 69% are concerned with the cost of health coverage and other benefits
- 54% are concerned with health care reform legislation
I’ll bet you that 54% is really 100%, but the other 46% believe you (HR Pro) have it under control, and most of us probably don’t!
ACA is confusing, and it seems like a moving target. Most vendors will tell you they can help, but when you really look into the folks who are giving them the information to give you, they’re really no different than you or I. What I really liked about my meeting with ADP is they have the resources to throw some really, really smart people at this, and they have the size and influence to probably get insight directly from those writing the legislation. With great size, comes great access!
ADP has launched a new solution called ADP Health Compliance. ADP Health Compliance combines Software as a Service (SaaS) with rigorous managed services staffed by ACA experts who can help to enable compliance while managing all of the complex regulatory requirements: Eligibility, Affordability and Regulatory Management. And you don’t even need to be an ADP client to sign up to use this solution!
“The ACA has transformed the practice of workforce management into a fluctuating system of checks and balances, and one missed step can be the difference between compliance and significant financial penalties,” said Saliterman. “ADP Health Compliance’s managed service feature is truly unique and can provide large employers with the expertise that only a leader in tax and compliance can deliver.”
“In our restaurants, the vast majority of our employees are variable hour workers whose time will change shift to shift, week to week. We need to constantly monitor employees hours—12 months a year—to determine who is required to be offered health coverage benefits and whether or not that coverage is affordable, which can be a heavy lift,” said Bruce Clark, Chief Financial Officer of Hooters Management Corporation, an early adopter of ADP Health Compliance. “Restaurant operators are good at running restaurants, but that doesn’t mean that they’re good at complicated compliance tasks. Our plan is to keep doing what we do and do that great, and we’ll leave ACA administration to our expert partner…“
Yeah, ACA isn’t sexy. It’s not employee engagement platforms, and digital interviewing and big data. ACA compliance is where HR Pros earn their chops, it’s real-life HR, and it’s something we can’t afford to get wrong. ADP isn’t paying me. I think they have a product a lot of you could actually use, and it protects your organization. Check it out. It’s probably worth your time to take a look and see where you might be at risk!
The issues you’ve written about are real and need solutions, however leading people into a relationship with ADP might be problematic. Companies in the 50-999 range are often some of their most unsatisfied clients as they struggle through the compliance challenges of growth and face a service model that doesn’t recognize their individual needs.
The product itself is good but the commentary that you don’t have to be a payroll client to use if is a bit misguided. The data that drives compliance comes from payroll and TLM systems. If you’re not using their systems then data must be entered via a manual process. And rest assured, if you’re not a payroll client, you’ll be asked early and often to become one.
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I think the comments point to the importance of knowing the client’s needs.
As a former consultant, I can say what works for one very well may not for another. I always tried to have a variety of solutions for my clients and direct them based on their need.
ADP and Paychex have some great products. The service level can be top notch but my experience is it depends on the actual service area and products. You will find advocates and detractors for them both (really any vendor.)
At the end of the day they’re all selling you something. Doing due diligence is always the smart way to go.
So what exactly are companies paying that broker they see 1x a year 6% of healthcare premiums for?
Granted it will not help with variable hours but companies should be insisting on value from their brokers, which means ACA compliance support in addition to administrative support.
I don’t disagree with you. Our own broker does a really great job, but I know they don’t have the resources someone like ADP has at their disposal. It comes down to simple economics.