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ASGroup Members Roy Fazio and Richard Purtell speak out on the ACA Mandate Delay for Employers

In an article just published by Staffing Industry Analysts, Protocall Group owner Roy Fazio and Richard Purtell, president and CEO of American Resource Staffing, were interviewed and quoted in an article focusing on the one-year delay in the Affordable Care Act (ACA’s) employer mandate.

The government may have delayed the Affordable Care Act’s employer mandate by one year, but don’t breathe a sigh of relief just yet because other parts of the ACA are still on track — including a notice requirement coming October 1 of this year. This notice will require employers to notify current and new employees about their employers’ health insurance offerings, if any.

The individual mandate has not been delayed (as of right now). People will be required to buy healthcare insurance starting January 1, 2014. The health insurance marketplaces are set to open October 1 to sell coverage that will take effect on January 1, 2014.

Fazio is an owner of The Protocall Group, a staffing provider based in Cherry Hill, N.J. He also serves as chairperson for Affiliated Staffing Group (ASGroup), an organization of non-competing staffing firms formed for the purpose of sharing best practices.

Preparation is key and the members of ASGroup have already been analyzing their workforce to gauge the impact of the ACA and are working on measures they need to take to provide insurance to employees, says Roy Fazio. And ASGroup’s insurance deal is particularly interesting given what appears to be a dearth of offerings for temporary workers.

Each ASGroup member company will have the ability to have their own experience and carve out what risk they wish to take. Almost all ASGroup members are analyzing their workforces to see how many people will be eligible for insurance under the look-back rule. The initial estimates are that approximately 18 cents to 31 cents per hour will be passed on to clients in increased pricing.

American Resource Staffing’s Purtell, who is a board member of ASGroup, says the insurance deal that ASGroup is considering for its temps calls for a self-funded program that includes re-insurance. This will involve another insurance company that will cover costs above a certain level. Getting the re-insurance firm on board involved the biggest difficulty and included educating the reinsurer on industrial staffing, Purtell says. What helped was the fact that the typical light industrial worker is a male aged 25 to 45 — characteristically a very healthy age group.

Purtell is familiar with healthcare reform, his firm has offices in New Hampshire as well as Massachusetts, where a law similar to healthcare reform is already in effect.

“I see the value of being in compliance,” Purtell says. The more you are in tune with regulations, the more consultative you get, and the further you are from firms that compete just on price, he says.

ASGroup has also been working with attorney Alden Bianchi for about a year to get prepared, Fazio says. Bianchi represented the Romney administration in connection with the 2006 Massachusetts healthcare reform act, upon which the ACA was based.

Read the full article by clicking this link.