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!
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.
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.
The document below outlines various definitions and terms used in regard to the ACA. These include:
The Supreme Court released their opinion on June 25, 2015 in which they rejected a challenge to the Affordable Care Act that would
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.
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.
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
Review the document below to find answers to the following questions:
One of the first areas of the law that is being targeted is how full-time employees are defined. Under the Employer-Shared Responsibility Tax,