Over the course of a hearing lasting more than three hours, U.S. Department of Health and Human Services Secretary Kathleen Sebelius fielded questions, complaints, and some praise from members of the House Energy and Commerce Committee about the Affordable Care Actβs implementation. Sebelius readily admitted to the failures in the Marketplace website, but promised to have the site βfully functionalβ by the end of November.
Articles Discussing Health Care Reform.
House Subcommittee Hearing Examines ACA Definition of Full-Time Employees
While the federal government remained on shutdown mode, the House Small Business Committee, Subcommittee on Health and Technology held a hearing on Wednesday to discuss how the Affordable Care Actβs (ACA) definition of βfull-time employeeβ will impact small businesses. Under the healthcare lawβs employer responsibility requirements β commonly known as the βpay-or-playβ provisions β an employer with 50 or more full-time or full-time equivalent employees will be required to provide health insurance that meets certain ACA standards to at least 95% of their full-time employees starting in 2015, or pay a penalty. The ACA considers a worker βfull timeβ if he or she works 30 hours or more per week, as opposed to the customary 40 hours used in other employment statutes and regulations.
What Do Employers Need to Know About the ACA Marketplace Notices?
Although the Affordable Care Act’s (ACA) “employer mandate” has been delayed until 2015, health insurance exchanges are still scheduled to start offering health coverage to individuals and employees of small businesses starting January 1, 2014. Open enrollment in these Health Insurance Marketplaces will begin on October 1, 2013. The ACA requires employers to send a Notice to their current employees advising them about the Health Insurance Marketplaces by October 1, 2013. With this Marketplace Notice deadline fast approaching, employers may have a number of questions about the scope of their obligations. This ASAP addresses some of the most frequently asked questions surrounding this Notice requirement.
White House Nixes Union Affordable Care Act Request
In a move that is likely to deepen laborβs disenchantment with the Affordable Care Act (ACA), the Obama administration on Friday rejected some union leadersβ call to apply certain ACA tax subsidies to participants in multi-employer health plans. On Wednesday, delegates to the AFL-CIO conference adopted a resolution outlining its concerns with the ACA. The resolution calls for, among other changes, an amendment that would allow non-profit multiemployer plans to have the same access to the ACAβs premium tax credits and cost-sharing reductions as other health plans. Without subsidies, these multi-employer plans will likely be comparatively more expensive for union workers who participate in these plans, thereby leading these workers to obtain insurance through the future health exchanges instead.
Employersβ Response to Affordable Care Act May Complicate Workersβ Compensation Claims
The coming implementation of the Patient Protection and Affordable Care Act may result in unintended consequences at the state level in reference to workerβs compensation designs and regulations.
IRS Issues Final Rule on ACA’s Individual Shared Responsibility Provision
The Internal Revenue Service has released its final rule governing the Affordable Care Actβs (ACA) shared responsibility provision requiring most individuals to obtain minimal essential health coverage or pay a penalty, commonly referred to as the individual mandate. Although the employer mandate has been delayed until 2015, the effective date of the individual mandate remains January 1, 2014.
IRS Issues Proposal to Implement Small Business Credit under ACA
The Internal Revenue Service has issued a proposed rule that aims to provide guidance on the small business tax credit under the Affordable Care Act (ACA). The ACA added section 45R to the Internal Revenue Code, which offers a tax credit to certain small employers that provide insured health coverage to their employees.
Employer Mandate Delay: Beware of Ignoring the ACA
On July 2, 2013, in a surprise move, the Department of the Treasury announced that it is delaying the Affordable Care Act (ACA) employer pay-or-play mandate and accompanying employer reporting requirements by one year. Accordingly, employers will not be subject to penalties for failing to offer full-time employees healthcare coverage that meets certain standards until 2015. Under Section 4980H of the Internal Revenue Code (IRC), βapplicable large employersβ must offer their full-time employees βminimum essential coverageβ that provides βminimum valueβ and is βaffordableβ or pay a penalty. The question of whether to play by offering such coverage or pay the penalty has become an important issue for many employers, and one that involves strategic choices about benefits structure and workforce composition. The delay comes as a relief to employers who were scrambling to prepare for the mandateβs 2014 effective date. While the delay is certainly welcome news for employers, it does not mean that they can ignore the ACA or the critical decisions it calls upon employers to make.
Double Whammy, Part II: EEOC Stance and ACA Final Regulations Impose New Burdens on Wellness Programs
A recently released Equal Employment Opportunity Commission (EEOC) information letter (EEOC Letter),1 along with the new final wellness regulations under the Patient Protection and Affordable Care Act (ACA), present new challenges for employer-provided wellness programs.
Legal Alert: Guidance Released on Delay of “Pay or Play” Penalties Under ACA
Executive Summary: The Obama Administration has released formal guidance on the delay of the Affordable Care Act’s (the “ACA”) employer mandate and certain reporting requirements.
Legal Alert: ACA “Pay or Play” Penalties Delayed Until 2015
Executive Summary: The Obama Administration has announced that implementation of the penalties under the Affordable Care Act’s (“ACA”) employer mandate (also known as the “pay or play” penalties) have been delayed until 2015.
Legal Alert: Notice of Health Exchange Coverage Options Guidance Released
Executive Summary: The Affordable Care Act added section 18B to the Fair Labor Standards Act (FLSA), which requires certain employers to send out notices to employees regarding the availability of the state-based Health Insurance Exchanges (“Exchange Notice”). Under the FLSA, these Exchange Notices were supposed to be provided to employees no later than March 1, 2013. However, on January 24, 2013, the Department of Labor (DOL) issued guidance delaying the Exchange Notice requirement until the summer or fall of 2013.
Legal Alert: Full Implementation of SHOP Health Exchanges Delayed
Executive Summary: The Department of Health and Human Services (“HHS”) recently announced that full implementation of the SHOP component of the state-based health insurance exchanges created by the Affordable Care Act (the “ACA”) run in full or in part by the federal government will be delayed until 2015. States setting up their own exchanges will be given the option to elect to similarly delay full implementation of their SHOPs until 2015.
Employee Notification Requirement Under Affordable Care Act
With 2013 in full swing, now is an excellent time to begin preparing for the changes that will take place as a result of the Affordable Care Act. Although most of these changes are set to take place in 2014, there is one important change that is right around the corner. Beginning on March 1, 2013, all employers with 50 or more full-time employees will be required to provide each employee at the time of hiring ‘ or, with respect to current employees, not later than March 1, 2013’ with written notice, in plain language, of certain provisions of the Affordable Care Act, including
Legal Alert: Health Care Reform is Here to Stay
Executive Summary: With the reelection of President Obama, health care reform is here to stay. Challenges to the law are still pending; however, employers need to comply with existing requirements and begin preparations for compliance with future requirements. In addition, new guidance and regulations are likely imminent.