Everything listed under: Full-time employee coverage

  • Guidelines to legitimately classing out full-time employees from being eligible for benefits

    Q: It seems like there should be some type of regulation to prevent discrimination when extending benefits to some full-time employees and not others. Are there any guidelines to legitimately classing out full-time employees from being eligible for benefits? A: In general, small employers with fully insured group health plans can offer benefits to certain classes of employees (and not others) based on reasonable, bona fide business classifications.They are not obligated to offer benefits to a pa...  Read More...

  • Providing healthcare coverage to groups with less than 50 lives

    Q: Is a group with less than 50 lives not required to provide healthcare coverage to employees, and therefore not subject to any penalty?A: As long as they are not part of a larger organization, an employer with fewer than 50 full time employees on average in the prior calendar year is not required to provide coverage to employees and therefore will not be subject to any penalties for failure to do so. Please Note: Special rules exist for new employers in their first year of existence. DISC...  Read More...

  • Penalties for not offering coverage to all full-time employees

    Q: What are the penalties for not offering coverage to all full-time employees? What size employer pays the penalties? A: ALE’s are exposed to a $2,000 per full-time employee penalty (as indexed) if they do not offer coverage to at least 95% of full-time employees and at least one full-time employee receives a federal premium subsidy, or a $3,000 per subsidy-receiving full-time employee if they offer coverage to at least 95% of full-time employees but it is not “affordable.” The $2,000 penalty i...  Read More...

  • Healthcare coverage for full-time employees

    Q: Are employers required to offer healthcare coverage to all full-time employees, or does this rule only apply to specific sized groups? If it’s the latter, which size groups? A: It only applies to “applicable large employers” which are generally employers that employed an average of at least 50 full-time employees (including full-time equivalent employees) on business days in the prior calendar year.   Read More...

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