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HomeMy WebLinkAboutR-2014-004 Identifying Full-Time Employees - Affordable Care Act RESOLUTION NO. R- 2014 -004 A RESOLUTION ESTABLISHING ELIGIBILITY FOR HEALTHCARE COVERAGE UNDER THE AFFORDABLE CARE ACT WHEREAS, effective January 1, 2015, large employers who do not offer "adequate" and "affordable" health coverage to their full -time (30+ hours per week) employees and their dependent children will be subject to a Free Rider penalty; and WHEREAS, the City of Riverside does qualify as a large employer and does provide adequate and affordable health coverage through the MPR benefits plans; and WHEREAS, the City desires to establish a determination method with respect to which employees are considered "full- time" under the Affordable Care Act guidelines for the purpose of determining eligibility for healthcare coverage. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS: THAT full -time status for the purpose of determining eligibility for healthcare coverage will be determined based on the following parameters: - An employee who averages more than 30 hours of service per week will be considered full -time for the purpose of health coverage. - A measurement period or "look back" period of 12 calendar months will be used to determine whether an employee averaged more than 30 hours of service per week. - If the measurement period shows an average of 30 hours or more per week, the employee will be treated as a full -time employee for the purpose of health coverage for a stability period of 12 calendar months. The stability period is the time during the coverage year that a variable hour employee must be guaranteed access to coverage, even if the employee's hours change during this time frame. - If an employee takes unpaid FMLA leave, the number of weeks in the measurement period will be reduced by the number of weeks of unpaid FMLA taken when determining the average; and FURTHER THAT the following Standard Timeline will be utilized: - Measurement Period: May 1 through April 30 - Administrative Period: May 1 through June 30 (with open enrollment during this period) - Stability Period: July 1 through June 30 PASSED AND AD S ' TED by the Board of Aldermen of the City of Riverside, Missouri, the,2/57lday of • 2014. t A 0 e Mayor Kathleen L. Rose . 'ATTEST: Robin*Littrell; City Clerk CITY OF RIVERS MISSOURI Upstream from ordinary. 2950 NW Vivion Road Riverside, Missouri 64150 DATE: 01 -21 -2013 TO: Mayor and Board of Aldermen FROM: Meredith Hauck, Director of Administration RE: Identifying Full -Time Employees Under the Affordable Healthcare Act Background Effective January 1, 2015, large employers who do not offer "adequate" and "affordable" health coverage to their full - time (30+ hours per week) employees and their dependent children will be subject to a Free Rider penalty. The City of Riverside does qualify as a large employer and does provide adequate and affordable health coverage through the MPR benefits plans. This memo serves to better outline how the City will determine which employees are considered "full - time" under the Affordable Healthcare Act guidelines for the purposes of determining eligibility for healthcare coverage. Identifying Full -Time Employees Full -time status for the purpose of determining eligibility for healthcare coverage will be determined based on the following parameters: - An employee who averages more than 30 hours of service per week will be considered full -time for the purpose of health coverage. - A measurement period or "look back" period of 12 calendar months will be used to determine whether an employee averaged more than 30 hours of service per week. - If the measurement period shows an average of 30 hours or more per week, the employee will be treated as a full -time employee for the purpose of health coverage for a stability period of 12 calendar months. The stability period is the time during the coverage year that a variable hour employee must be guaranteed access to coverage, even if the employee's hours change during this time frame. - If an employee takes unpaid FMLA leave, the number of weeks in the measurement period will be reduced by the number of weeks of unpaid FMLA taken when determining the average. Standard Timeline - Measurement Period: May 1 through April 30 - Administrative Period: May 1 through June 30 (with open enrollment during this period) - Stability Period: July 1 through June 30