HRB EXPECTS ACA TO SIGNIFICANTLY BOOST REVENUE

[Lee B]

H&R Block looks forward to 2015 ACA boost

 

In an investor conference yesterday to discuss its second-quarter results, H&R Block CFO Greg Macfarlane said the firm is expecting a significant boost in revenue from clients accounting for healthcare policies bought under the Affordable Care Act.

 

He said there is a “pricing opportunity” from the myriad new forms, documents and questions demanded by the measure, and added that it “will only get more complicated as the next few years unravel”. The firm estimates that the number of people enrolled in coverage under the state and federal exchanges will grow to 24m next year; Those who received benefits will have to reconcile the amount of credits they received based on an estimate of their 2014 earnings with their actual income.

 

Kansas City Star

 

[Randall]

I would think it would get easier in future years.  To my understanding, for 2014, only insurance acquired thru the exchanges are required to send Form 1095.  But for future years, all insurance companies (exchange or not) will be required to send the Form 1095.  So after 2014, we should know if a client has insurance or not and what type of coverage from his 1095.

[Jack from Ohio]

I would think it would get easier in future years.  To my understanding, for 2014, only insurance acquired thru the exchanges are required to send Form 1095.  But for future years, all insurance companies (exchange or not) will be required to send the Form 1095.  So after 2014, we should know if a client has insurance or not and what type of coverage from his 1095.

You need to get some training about the ACA RIGHT AWAY!!  It is by no means that simple!!

[Terry D EA]

Agreed!!!

[HV Ken]

Sure it is going to boost revenue, but it is also going to increase expenses due to the impact on productivity.  If I estimate a 25% loss in productivity, that means if I normally do 200 tax returns in 10 weeks, I can now only do 150 in the same time with the same resource.  This is going to require hiring additional help and it is not clear to me how to best utilize that new help yet.  After all, 9 women pregnant for 1 month each does not produce a baby!