Affordable Care Act FAQ’s for Boly:Welch Staffing Clients
• We will offer two healthcare insurance plans to all eligible fulltime employees.
• Both plans exceed the minimum essential requirements.
• We will ensure that the cost of the base plan we offer is “affordable” (i.e. will not require any employee to pay more than 9.56% of their hourly pay towards the costs of an individual plan.
• We will ensure that the plans(s) offered and our contribution to these plans does not favorably treat highly compensated employees.
• We will evaluate eligibility for variable hour employees using a rolling 11 month “look back” period to ensure we are meeting ACA requirements.
Yes. Boly:Welch believes that a solid health care plan is important in attracting and retaining employees. We will be offering two different plans for our employees; both are rich plans that meet all ACA requirements and include Health & Wellness Benefits.
Boly:Welch has elected a two-prong approach in addressing the cost of ACA. First, we will amortize a portion of the cost across our entire client base minimizing the cost to all, while affording coverage for all eligible employees. Secondly, all long term assignments will be priced accordingly, to accommodate the applicable ACA costs.
Yes, since we cannot discriminate as to the eligibility for benefits, all rates will be impacted but it will be minimal as costs will be distributed across our wide client base.
No. We will not terminate or refuse to reassign Temporary Employees to keep them from reaching ACA eligibility in keeping with our values, our internal policies and existing legislation.
Continuation of coverage is based on hours worked, the look back period, the stability period and the employee’s interest in and ability to pay their portion of the premium.
Employees that averaged a minimum of 30 hours of service per week, or 130 hours of service per month, during the look back period of 1/1/14-‐11/30/2014 will be eligible to enroll in benefits effective 1/1/2015. They will have access to Boly:Welch benefit plan(s) for the 11 months post eligibility period unless they terminate employment with Boly:Welch or coverage ends due to nonpayment of the employee portion of insurance premium.
In the event that the employee cannot transfer onto your benefit plan as of day one of their employment with you, the former Boly:Welch Temporary Employee will be eligible to participate in Boly:Welch COBRA benefits until eligible for your company benefits.
Yes, However, you would work with your new employee to cover COBRA costs and payment during your insurance waiting period.
All payroll service employees that meet the plan enrollment requirements as noted above will be eligible to participate in the Boly:Welch benefit plan(s).
We have elected to notify our employees via Docusign, email and phone when they become eligible for benefits.
An individual rehired after a break in service of at least 13 weeks is a new hire. An individual hired after a break in service of less than 13 weeks is a rehire.
Exception: Employees with a break in service of less than 13 weeks may still qualify as a new hire if the individual’s break in service was more than 4 weeks, and the break in service was longer in duration than the last employment period.
The significance of determining whether an individual is a new hire or a rehire will ultimately determine when we must offer healthcare coverage. A returning employee with a break in service of less than 13 weeks will be considered as continuing his or her employment and will be credited for hours worked during the most recent look-back period. They will be offered healthcare enrollment if and when they meet the requirements.
ACA (Affordable Care Act): The Patient Protection and Affordable Care Act (PPACA) – also known as the Affordable Care Act or ACA, and generally referred to as Obamacare – is the landmark health reform legislation passed by the 111th Congress and signed into law by President Barack Obama in March 2010. The legislation includes a long list of health-related provisions that began taking effect in 2010 and will “continue to be rolled out over the next several years.” Key provisions are intended to extend coverage to millions of uninsured Americans, to implement measures that will lower health care costs and improve system efficiency, and to eliminate industry practices that include rescission and denial of coverage due to pre-existing conditions.
Affordable Health Care: Employer-provided health insurance coverage is deemed “affordable” if the premium required to be paid by the employee for self-only coverage does not exceed 9.56% of the employee’s household income.
Variable Hour Employee: A variable hour employee is one whose schedule cannot be definitively known in advance. In other words, the employee’s hours vary such that it is not possible to determine as of the date of hire whether the employee will work 30 weekly (or 130 monthly) hours or more during their period of employment.
Look-back Measurement Period: No longer than 12 months and no shorter than three consecutive months to determine if an employee has full-time status and is eligible for health care coverage.
Administrative Period: Up to 90 days for employer to calculate and notify employees of full-time status, enroll/disenroll employees and carry out similar administrative tasks.
Stability Period: Once employees are notified of their full-time status, they will be considered full-time for a stability period that can be no less than six and no more than 12 months (and not longer than the measurement period, except in this first year), regardless of hours worked during this time. At the end of the stability period, the employer may again measure the employee’s status.
Safe Harbors: The documents that the IRS has allowed employers to use to help determine whether the cost of employee-only coverage is affordable. They are W2’s, rate of pay, Federal Poverty Line.