For those in the employee benefits industry, waiting on final regulations is nothing new. However, as we celebrate the Patient Protection and Affordable Care Act’s 3rd birthday, yet another waiting game begins. The comment period for the Employer Mandate proposed regulations closed on March 18, 2013. Many employers are anxiously anticipating the release of the final regulations, as well as any unofficial remarks that may come out of the public hearing to be held at the IRS on April 23, 2013. Diving into the practical application of the proposed rules has revealed a number of unanswered questions – questions many hope will be addressed when the final regulations are released. The IRS received over 380 comments to the Employer Mandate proposed regulations. Although this pales in comparison to the 147,000 comments received regarding the contraception mandate, the IRS still has plenty to work with. Here are some of the highlights:
- Clarification of the rules regarding the counting of hours of service for adjunct faculty and other employees of educational institutions;
- A list of factors to consider and/or guidance surrounding the definition of a seasonal employee;
- Guidance for calculating affordability of employees paid on commission or by stipend;
- Allowing an employer to factor in any available wellness incentives in determining affordability of employer sponsored insurance coverage under the available affordability safe harbors;
- Guidance regarding the applicability of Section 4980H to Service Contract Act employees;
- Exemption from penalties triggered by employees who would have been covered if a state expanded its Medicaid program;
- Contractual allocation of penalty liabilty between PEOs and temporary staffing agencies and recipient employer organizations for employees acquired through a PEO or staffing agency;
- More details on how independent contractors or leased employees should be categorized under the common law employee rules;
- Clarification on the use of the look-back measurement period for determining full time status of variable hour employees; and
- Additional guidance on transition relief for non-calendar year plans.
The comments received span a variety of industries from education to manufacturing to the U.S. Chamber of Commerce and the American Insitute of Certified Public Accountants. To review the proposed regulations or browse the public comments submitted, please click here. Remember to visit the Healthcare Reform Digest often for current information on the Affordable Care Act!
