Mills and McGowan Offer Advice to Employers in Light of the PPACA

News / August 6, 2012

The Supreme Court’s decision to uphold the Patient Protection and Affordable Care Act (PPACA) let the individual mandate stand. Under the law, employers with 50 or more full-time or full-time-equivalent employees are required to offer health insurance to those employees and their dependents or pay a penalty. While the mandate to offer coverage does not go into effect until 2014 there are deadlines to meet in the meantime, says Nation’s Restaurant News.

The publication reached out to Benefits Partners Jennifer Mills and John McGowan for their perspective on how employers should proceed.

Mills suggested employers study the size of their workforce. “Restaurants are always going to have that hourly wait staff — servers, kitchen workers, hosts, a floating, dynamic workforce,” Mills said in the August 6 article (“Dose of advice on health care compliance”). “Before, you’ve worried about scheduling and paying them accurately, but you’ve had some flexibility in buying coverage. Now, you need an accurate head count.”

McGowan advised employers to get their records in order. “There will be a lot of new reporting requirements on employers,” said McGowan, who noted that more guidance on reporting requirements would be forthcoming. He anticipates a lot of restaurateurs will be hiring services that offer back-office support.

“Reporting will be more burdensome, and it will be more important to do it correctly,” he added.