Shared Responsibility Mandate for Affordable Care Act in Georgia
Ensure compliance with ACA regulations in Georgia regarding employer-provided health coverage, with details on coverage requirements, affordability, penalties for non-compliance, and tracking methods.
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Presentation Transcript
1 The Affordable Care Act (ACA) Shared Responsibility Mandate Creating A More Educated Georgia
2 Shared Responsibility Mandate If employer offers coverage, must be offered to 95% of full- time employees Must be Affordable Must meet Minimum Value Standards Use Safe Harbor guidelines to determine track time of Creating A More Educated Georgia
3 Coverage Defined as: 95% of full-time employees Full-time is defined as average of 30+ hours per week Includes employee s children to age 26 Spouses or domestic partners not required Must have the opportunity to enroll at least once per year Creating A More Educated Georgia
4 Affordability Affordable coverage is coverage that is 9.5% or less of household income Federal government offered 3- Safe Harbors to employers USG is using the Federal Poverty Line Safe Harbor: Must offer coverage with an employee premium that is 9.5% or below the Federal Poverty level 2014 Federal Poverty level is $11,680; 9.5% of $11,680 is $1,110 or a monthly premium of $92 USG High Deductible Health Plan monthly premium is $47 Under Safe Harbor, employee is not eligible for subsidy in the exchange market and USG would not be subject to penalties Creating A More Educated Georgia
5 Minimum Value 60% minimum plan value based on ACA rules definition of essential health benefits Healthcare Plan s actuary has confirmed all USG Healthcare plans meet Minimum Value coverage as defined by ACA Creating A More Educated Georgia
6 Penalties for not meeting Shared Responsibility requirements If don t meet coverage requirements: $2,000 times total number of FTEs not counting first 30 FTEs if don t meet coverage requirements If don t meet affordability requirements: Up to $3,000 annually for each FTE receiving income based assistance for health insurance exchange coverage Each USG institution s management is accountable and responsible for achieving and maintaining compliance with the requirements under the Affordable Care Act Each USG institution will be held financial accountable for non-compliance Creating A More Educated Georgia
Tracking Time Worked - initiallyall employees not offered health insurance 7 Safe Harbor Tracking Method Look-back or measurement period (3-12 months), this is the period of time in which hours will be tracked for part-time employees; standard year after year After the measurement period, employers have the option to have an administrative period (up to 90 days); this period is used to determine eligibility and facilitate enrollment of any employees who meet eligibility Stability period period during which part-time employees who met eligibility may elect to participate in the healthcare plan (6-12 months) Hours worked for faculty must be calculated based on the academic year to determine eligibility unless they work during the summer Creating A More Educated Georgia
8 Example Tracking Periods Creating A More Educated Georgia
9 Reporting Employers are required to report their employer provided health coverage data to the Federal Government Creating A More Educated Georgia
10 Three Major Impacts 1. Must revise the USG Employee Category Policy and the definitions of employment and employee types Develop a Conversion Chart for Credit hours to hours worked for part-time faculty Set up tracking method to determine health benefits eligibility for part-time workers 2. 3. Creating A More Educated Georgia
11 Final Guidance Released February 10, 2014 Further Guidance on types of employees and hours of service 2015 Transition Tracking Period Provisions Transitional 6 month tracking period Must begin Creating A More Educated Georgia
12 Definitions from Guidance Seasonal Variable Hour Adjunct Faculty Rehired employees Creating A More Educated Georgia
13 Student Employees Creating A More Educated Georgia
Proposed Definition of Student Employees 14 Currently not exempt under ACA Proposed solution is to revise the Employee Category Policy: Students must work part-time except during the summer and holidays and may not exceed 1300 hours in any consecutive 12-month period International students and work study students must work no more than 20 hours per week Creating A More Educated Georgia
15 Next Steps Collect feedback from this group and from system-wide VPAAs, CBOs, and CHROs, last week of February or first week of March Finalize documents and distribute system wide mid-March Training sessions first two weeks in April Creating A More Educated Georgia
16 Send suggestions/comments to VPAA listserv Creating A More Educated Georgia
