WHY the Failure of the AHCA and the Continuance of the ACA Favor the Hiring of Temporary Employees

AHCA? ACA? An alphabet salad, some may suggest.

We’re of course talking about the new health care system President Trump’s administration and Republicans were trying to get passed – the AHCA, otherwise known as the American Health Care Act, and the ACA, also known as the Affordable Care Act – created and activated by the Obama administration. Despite the controversial nature of the ACA and it’s mandatory requirement that all Americans have health care of some type, as well as the “socialist” bent of the concept according to many conservative politicians – as well as Trump’s vow to obliterate “Obamacare” as soon as he entered office – the inability of senators and representatives to agree on passing the newly proposed AHCA means that for now at least, the ACA remains alive and active for Americans.

A very informative article by the good lawyers at Mintz Levin – a law firm specializing in, among other practice areas, Employment, Labor and Benefits, helps to clear the air and explain the current standing of the ACA and why it benefits the use of temporary employees – or at least the kind of temporary associates utilized by Flex-Team Inc.

As the well-written piece elucidates, “Employers were not a major focus of the architects of the ACA, nor were they a major focus of those who crafted the AHCA. This is not surprising. These laws address health care systems and structures, especially health care financing. Rightly or wrongly, employers have not been viewed by policymakers as major stakeholders on those issues. In a blog post published at the end of 2014, we made the following observations:

The ACA sits atop a major tectonic plate of the U.S. economy, nearly 18% of which is health care-related. Health care providers, commercial insurance carriers, and the vast Medicare/Medicaid complex are the law’s primary stakeholders. They, and their local communities, have much to lose or gain depending on how health care financing is regulated. The ACA is the way it is largely because of them. Far more than any other circumstance, including which political party controls which branch of government, it is the interests of the ACA’s major stakeholders that determine the law’s future. And there is no indication whatsoever that, from the perspective of these entities, the calculus that drove the ACA’s enactment has changed. U.S. employers, even the largest employers among them, are bit players in this drama. They have little leverage, so they are relegated to complying and grumbling (not necessarily in that order).

With the AHCA’s collapse, the ACA remains the law of the land for the foreseeable future. The AHCA would have zeroed out the penalties on “applicable large” employers that fail to make qualified offers of health coverage, but the bill’s failure leaves the ACA’s “play or pay” rules in full force and effect. The ACA’s reporting rules, which the AHCA would not have changed, also remain in effect. This means, among other things, that many employers, especially those with large numbers of part-time, seasonal, and temporary workers that face unique compliance challenges, will continue to be in the position of “complying and grumbling.” Please read the entire article by Mintz Levin professionals here.

One of the many advantages of using temporary employees as supplied by Flex-Team Inc. is that, although individuals work on-location at companies throughout the NEO region and are required to conduct themselves according to the rules of the business where they are serving, these men and women are actually employees of Flex-Team. This means that we handle their paperwork, we handle their taxes, and yes, we assist them in securing health insurance as our employees. In other words, the companies who we count as our clients don’t have to worry about health insurance coverage for these additional associates – Flex-Team handles those details. Our clients get the benefits of an additional labor force without the costs and paperwork that come with hiring full-time staff. This scenario provides many benefits for our clients, as we serve as their auxiliary HR team. Our employees arrive ready-to-work and our clients simply receive a bill for their hours of employment.  The rest, as they say, is up to us.

HR paperwork and health insurance management – just two of the many reasons our flexible workforce solutions are used by an increasing number of companies throughout northeast Ohio. You can learn more here. 

Ready to engage with Flex-Team and our in-office HR solution for additional labor needs? Please contact us today and get started with our flexible labor solution, won’t you?

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