alleviating hr’s aca headaches august 13, 2015 lyndsey barnett, esq. graydon head & ritchey...
TRANSCRIPT
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Alleviating HR’s ACA Headaches
August 13, 2015
Lyndsey Barnett, Esq.Graydon Head & Ritchey
LLP
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Affordable Care Act
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Where We Are At&
Where We Are Still Going
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What Has Occurred Dependent age 26 mandate
Opening of exchanges Expansion of Medicaid
Community rating
Employer MandateIndividual Mandate
Small business tax credits
Elimination of preexisting conditions
Early retiree subsidies
Free preventive services Cost sharing rules
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Reporting
• Applies to all large employers and to all self-funded employers
• First reports are due in 2016 for 2015
• IRS Forms 1094 and 1095
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Reporting Deadlines
• Forms due to employees – January 31
• Forms due to IRS if submitted electronically – March 31
• Forms due to IRS if submitted in paper (only permissible if fewer than 250 returns) – February 28
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Reporting – Large Employers
• Number of FT employees by month
• Number of total employees by month
• Employees share of lowest cost premium
• Whether employee was offered coverage, was it minimum value and affordable
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Reporting – Self-Funded Employers
• Name, address and SSN of covered employees, spouses and dependents
• Months of coverage for each individual
• General employer information
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Cadillac Tax
40% Excise Tax
Effective in 2018
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Cadillac Tax – Excess Contributions
• Single Coverage - $10,200
• All other tiers - $27,500
• Indexed based on medical inflation
• Age and gender adjustments
• Employment status adjustments
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Cadillac Tax – Subject to Tax
Employer & Employee Premium
Contributions to Health Plans
Contributions to FSAs, HSAs and
HRAs
On-Site Clinics, EAP & Wellness Programs
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Cadillac Tax – Not Subject to Tax
Limited scope dental and
vision benefits
Long-term care
insurance
Accident or disability insurance
Liability or automobile
medical payment insurance
Workers’ compensation
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Who Are Your Full-Time Employees?
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Full-Time Employee
• An employee who works an average of 30 or more hours per week
• An employee who works an average of 130 or more hours per month
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10/15/13 10/15/1510/15/14 10/15/16 12/31/171/1/171/1/15 1/1/16
Measurement
Measurement
Measurement
Stability
Stability
Stability
= Administrative Period
Lookback Method
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Your Definition
401(K) Dental
Life LTDPTO
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How it Impacts the HR Function
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New Hire Process
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Waiting Period
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Seasonal
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Leaves of Absence
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Nonpayment of Premium
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Termination
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COBRA
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Action Items
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