Rising healthcare costs and the implementation of the Patient Protection and Affordable Care Act (ACA) are driving significant change to health and welfare benefit plans across the country.

Organizations need to understand their responsibilities and choices, assess whether costs are sustainable, develop their strategies, prepare for compliance, and implement their plans. In today’s environment of needing to do more with less, the ACA is placing overwhelming demands on limited resources.

More than ever, the ACA is increasing the need to better manage health care costs and maintain compliance with complex requirements. Employer Mandate penalties, additional fees like the Patient Centered Outcomes Research Institute fee and the Transitional Reinsurance Fee, and the much anticipated Excise Tax on High Cost Plans (Cadillac Tax) make it harder to provide affordable coverage to employees and maintain an acceptable budget for health care expenses or premiums to the organization.

All of this is occurring in an environment where health care costs are already increasing at a rate of two to three times that of general inflation trends.

Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation.