While employers have been urged to maintain ACA compliance when it comes to reporting the health care information of its employees, there’s more to it. The Employee Retirement Income Security Act of 1974 (ERISA) mandates that employees newly eligible for health care from their organization must receive a Summary Plan Description (SPD), which details their health care plan.
Many employers have modified the scope of health care and those eligible in their companies as employees who work on average 30 hours or more per week should be eligible for health care.
Even if your current SPD falls in line with ACA compliance, it’s best to make necessary modifications now to save yourself from future issues down the road. Such information includes how full-time employees are measured, whether monthly or look-back method.
The periods for the insured (especially if using the look-back method) should also be stated, as well as changes from part-time to full-time, unpaid leaves of absence and the event of employee rehires. In many cases language is everything, but if you’re still unsure of your ACA compliance, you should get a free ACA penalty risk assessment.
