Only 31% of credit unions are ready to comply with the 2013 and2014 requirements of the Patient Protection and Affordable Care Actof 2010, according to a survey by CUNA Mutual Group.

The survey also found that another 14% of CUs are prepared for2013 ACA (otherwise known as Obamacare) requirements, said BradPricer, senior manager for employee benefits product management forCUNA Mutual in Madison, Wis.

However, 26% of CUs surveyed indicated either they were notprepared, were not planning to start preparations until after 2012or have a timeline for beginning preparations to comply withACA.

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Pricer, who spoke at the CUNA Human Resources and Training andDevelopment Council Conference on Tuesday in Anaheim, Calif.,encouraged credit unions to prepare to comply with ACA requirementsbecause the U.S. Department of Labor has begun to audit businessesfor ACA compliance.

“Credit unions should be working with their broker or consultantto stay on top of required mandates,” Pricer said.

Pricer was joined by Annette Bechtold, senior vice president ofregulatory affairs and reform initiatives with Digital BenefitAdvisors in Atlanta, who reviewed key requirements credit unionsneed to comply with in 2013 and 2014:

• Ensuring compliance with ACA's non-discrimination rulesregarding favoring highly compensated employees in benefitsoffered,
• Understanding whether the health coverage offered to employeesis sufficient to avoid penalties,
• Ensuring health plans contain all mandated plan requirements,and,
• Meeting reporting requirements.

“It's important credit unions understand what effect 'play orpay' penalties have on them if they don't offer certain levels ofcoverage deemed affordable under health care reform,” Bechtoldsaid.

The pay or play penalties refer to ACA's requirement that allemployers determine whether their health care plan is affordableand provides minimum coverage. Credit unions that don't meet thosetwo requirements would be required to pay a penalty tax of up to$2,000 per employee come Jan. 1, 2014.

The CUNA Mutual Group website features a health care reform “pay or play” calculatorthat can help determine if the insurance is affordable and offersadequate coverage.

Pricer said it is his opinion that most credit unions willcontinue offering health care coverage to employees even after theACA is fully implemented.

“How they offer that coverage will likely change,” he said.“They might choose to fund it through a defined contributionapproach or purchase coverage through public or privateexchanges.”

Pricer also said health care reform offers credit unionsopportunities as to how they potentially fund their health planofferings. Credit unions may find this enables them to better planhealth care costs year over year, while remaining an employer ofchoice in the eyes of employees.

“Ultimately, the decision to offer health care coverage will bedriven by affordability and whether it embraces the philosophy ofbeing an employer of choice to recruit and retain the bestavailable talent,” he said.