The IAA One Minute Blog

Since the passage of the Patient Protection and Affordable Care Act (PPACA) you might have noticed there have been some changes in the healthcare industry. There are still more changes around the bend and Insurance Administrator of America is here to inform you of them. So sit back, relax, and enjoy the PPACA highlights below.

Automatic Enrollment

The PPACA requires employers who have more than 200 full-time employees to automatically enroll new full-time employees in one of the employer's health benefits plans. The agencies (i.e. the Department of Labor and the Department of the Treasury) have concluded that automatic enrollment guidance will not be ready to take effect by 2014.

While automatic enrollment may be fun for something like Publisher's Clearing House, this type of automatic enrollment is going to be very costly to businesses. Question: Will the requirement to enroll employees create an incentive for certain employers to outsource jobs to another country? What are your thoughts?

90 Day Limitation on Waiting Periods

In plan years beginning on or after January 1, 2014, a group health plan cannot apply any waiting period that exceeds 90 days. Notice 2012-17 (which provides guidance on the matter) says that at least for the first three months following an employee's date of hire, an employer that sponsors a group health plan will not be subject to the employer responsibility payment. Failure to offer coverage would not be in affect for the first three months of employment.

IAA wants to reassure you this waiting period does not impact your Flexible Spending Account Plan (FSA).

Will these changes impact insurance company rates or employers hiring practices? Let us know!

New Hires and Employer Responsibility Penalties

Upcoming guidance on this matter is expected to show that employers have six months to determine whether or not a newly hired employee is a full-time employee for purposes of determining the employer responsibility payment. The Department of the Treasury and the Internal Revenue Services (IRS) intend to propose an approach that will depend on whether

a) the employee is reasonably expected as of the time of hire to work an average of 30 or more hours per week on an annual basis.

b) the employee's first three months of employment are reasonably viewed, as of the end of that period, as representative of the average hours the employee is expected to work on an annual basis.

Will the employer change the job description to attract part time employees? Leave a comment telling IAA your thoughts below!

IAA Wants to Hear What You Think

IAA feels it is important to keep you up to date on the PPACA. IAA will provide the information; you just need to find a comfy chair and watch the changing world of healthcare.

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