Employer mandate delayed for 50-99 employers, some rules relaxed for larger companies

To link directly to the Scott Healthcare Reform Bulletin click here.

On Monday the IRS released the final rules regarding Shared responsibility for employers regarding health coverage.  Highlights from the final rules are:

-Employers with 50-99 full time employers do not have to comply with the employer mandate until 1/1/16.

-Employers with 100 full time employees or more will be required to comply in 2015, but based on these new final regulations will only have to offer coverage to 70% of full time employees in the first year.  The requirement will increase to the previously stated 95% in 2016.

-Clarification that the IRS will define a seasonal employee as "an employee in a position for which the customary annual employment is six months or less. The reference to customary means that by the nature of the position an employee in this position typically works for a period of six months or less, and that period should begin each calendar year in approximately the same part of the year, such as summer or winter".

-Provided additional details on the arrangements for temporary staffing agencies.

-The reporting requirements of section 6056 will apply to all employers over 50 employees beginning in 2015. Even to those between 50-99 who will not have to offer coverage.  

-Transition relief to non-calendar year plans was granted so that non-calendar year plans don't have to comply with the employer mandate until the start of their plan year in 2015.

For additional articles on the release follow the links below:

Washington Post

LifeHealthPRO

New CBO PPACA Estimates Released

On Tuesday the CBO released its updated 10 year budget and economic outlook. The items that garnered the most media attention were appendix B and C which focused on updated impact of PPACA.

Here are some highlights of the report:

-The net cost from the PPACA coverage provisions between 2015-2024 are expected to be $1.48 trillion.

-The expectation is that the number of nonelderly people who have health insurance will increase by 13 million in 2014.

-Still, according to estimates 31 million nonelderly residents of the US will not have insurance in 2024.

-The CBO and JCT reduced the projected number of people who would be covered through the marketplace in 2014 from 7 million to 6 million.

-It is estimated that 80% of those enrolling in the marketplace will receive subsidies.

-The average subsidy per subsidized enrollee is expected to be $4700

-The number of people expected to be covered through employment-based coverage increased compared to the previous outlook.

-The CBO estimates that PPACA will cause a reduction of roughly 1% in aggregate labor compensation over the 2017-2024 period. Mostly because workers will choose to supply less labor so they can gain or keep eligibility for PPACA subsides.

-The reduction in hours worked represents a decline in the number of full-time equivalent workers of about 2 million in 2017, rising to about 2.5 million in 2024.

Changes to "Full Time" definition being proposed by House Committee

By Allison Bell - From LifeHealthPro - for original article click here.

The House Ways and Means Committee is considering a bill that could narrow the scope of the employer health insurance “shared responsibility” requirements.

The committee plans to mark up the mandate bill Tuesday morning.

The bill, H.R. 2575, would change the definition federal agencies use when deciding whether someone is a full-time worker for purposes of health coverage under the Patient Protection and Affordable Care Act.

PPACA defines full-time as at least 30 hours per week.

H.R. 2575, the “Save American Workers Act of 2013” bill, would change the cut-off to 40 hours and would take effect retroactively.

The PPACA group health coverage “play or pay” mandate will require an employer with 50 or more full-time employees to offer a minimum level of group health coverage or else pay a penalty.

House Ways and Means Committee Chairman Dave Camp, R-Mich., has proposed another version of the bill that would change the year title and have the bill be effective after Dec. 31, 2013
.
Rep. Todd Young, R-Ind., the sponsor of H.R. 2575, has rounded up 192 Republican cosponsors for the bill but no Democratic cosponsors.

Sen. Susan Collins, R-Maine, has lined up two Democratic cosponsors for a Senate version of the bill, S. 1188. Sen. Joe Donnelly, D-Ind., helped introduce the bill back in June, and Sen. Joe Manchin III, D-W.Va., came aboard as a supporter in October. The bill also has 11 Republican cosponsors.