Long before the passage of the ACA, PEOs worked with small and mid-sized business clients to provide their employees access to health insurance. Under the ACA, PEOs continue to provide the employees of these companies access to ACA-compliant health insurance. NAPEO members also assist their clients in complying with the employer mandate and the regulations that flow from this requirement. As ACA implementation has unfolded, NAPEO has monitored the efforts of federal agencies and state insurance departments to ensure that the PEO industry is kept up-to-date on the latest ACA implementation developments.
NAPEO and the Affordable Care Act (ACA)
In 2010, NAPEO was successful in having a statement read on the Senate floor clarifying that the application of small business tax credits, employer mandates, and non-discrimination testing should be at the PEO client level. This was accomplished through a Senate colloquy between Senators Nelson (D-FL), Baucus (D-MT), and Grassley (R-IA) which explained the Congressional intent of the ACA in specific PEO situations.
Moving forward, NAPEO believes that Congress should focus attention toward easing the cost and compliance burdens associated with the ACA. There are numerous bipartisan bills before Congress that could bring relief from the regulatory burdens of the ACA. That is why NAPEO is supporting legislation to change the definition of full-time employment in the ACA from 30 hours per week to 40 hours per week, as well as legislation to repeal the 40 percent excise tax on employer-provided health insurance. These proposals will help ease the burden of ACA compliance and make health insurance more affordable for the employees of small and mid-sized companies.