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UPS to Cut Spousal Coverage

UPS recently sent a memo to their employees informing them that they will be cutting spousal coverage. They cite the Affordable Care Act as the impetus for change in their coverage. This is largely related to the “Play or Pay” tax of the law. Under the “Play or Pay” tax, employers are required to offer coverage to at least 95% of their full-time employees and their dependents. Detailed regulations clarify that “dependents” means children only, and does not include spouses. This means that as long as employers offer an employee-only plan and an employee plus children plan, they would be in compliance with the regulations, and thus avoid tax liability. This is one strategy that an employer can take to comply with regulations, but also cut costs. It will be interesting to see if UPS’s major competitors will follow suit. I believe that we will see trends start to break out by industry when it comes to new coverage options. This is just a sign of what’s to come, so keep your eyes open!

The SHOP Marketplace delay

Several weeks ago the Obama administration announced that they would be delaying online enrollments for the SHOP exchange, where small businesses can come and purchase coverage.

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Consumers Starting to Get Sticker Shock?

Shouldn’t we have seen this coming? My answer is, “Heck yes!” If you simply look at the logic of the law, there was no question premiums were going to go up significantly in 2014.

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An easier way to ensure ACA compliance

“Affordable Care Act reporting and compliance” is not a fun phrase to hear. While the forms look easy, proper reporting remains a mystery to many, and a frustration for everyone else. This isn’t surprising, considering the process is only a year old, and last year the IRS granted leniency by allowing employers to simply make a "good faith effort."

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Target Corporation ACA Planning

As companies around the country conduct their own impact analysis and model various scenarios, we see them continuing to define and outline their Affordable Care Act strategy and announce aspects of their plan. Target has become the most recent addition to the list but certainly not the last. 

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Ready…Set….Start Counting!

We are now officially in the year 2014. In less than one year the Employer Shared Responsibility Tax will be underway and Applicable Large Employers will be responsible to offer their Full-Time employees health care coverage or a pay a penalty tax on their behalf.

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Forever 21 Suppressing Hours

Well – that did not take long to see another emerging trend regarding employer decisions about healthcare coverage! Yesterday my blog referred to UPS dropping spousal coverage, which is permissible

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