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May 19, 2015

Problems With Your Health Plan? Or Your FLC’s Plan?

Are you wondering if your company’s health benefits are in compliance with new Affordable Care Act rules? Do you work with a farm labor contractor (FLC) whose benefits sound a little too good to be true? If you think that doesn’t matter for your business, you should think again. Either way, you need to know how to protect your company and stay in compliance with the law to avoid costly tax penalties.

What To look For

First, if you work with a farm labor contractor, you should know what kinds of plans the FLC offers and whether it is compliant with the Affordable Care Act. Remember, a company can have a non-compliant plan it offers for no cost to employees as long as it also offers a compliant plan as an option employees pay extra to get. So, if the FLC plan is complex, reach out to Western Growers Insurance Services (WGIS) for help figuring out compliance.

Next, watch for plans that sound too good to be true. If a health plan costs $60, chances are it’s a preventive-only plan. And those plans won’t be compliant as of the end of this year. At the same time, if a plan is under $170, you probably want to call WGIS to talk through the details.

If you have a self-funded plan the employer pays for, your requirements are different. You need to talk to experts. Again, here’s where WGIS can help.

What To Do

  1. Identify. Whether you’re working with a FLC or looking at your own company’s plan, make sure you’re aware of what concerns your situation may cause with the IRS.
  2. Communicate.  Talk with your FLC to determine whether coverage meets ACA rules and how the FLC safeguards your company in case of issues.
  3. Document. Make sure you do more than identify your FLC’s health care concerns, that you also document how the FLC will protect your company from tax penalties.
  4. Strategize. Talk with WGIS now to plan for next year. Start by contacting senior vice president Greg Nelson at [email protected] or 949.885.2287.