Press Alt + R to read the document text or Alt + P to download or print.
This document contains no pages.
HomeMy WebLinkAbout10. ACA Update/o.
i
Central Contra Costa Sanitary District
August 10, 2015
TO: ADMINISTRATION COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
ANN SASAKI, DEPUTY GENERAL MANAGER
FROM: TEJI OWALLEY, HUMAN RESOURCES MANAGER
SUBJECT: AFFORDABLE CARE ACT (ACA) UPDATE
This memo is to provide an overview of the ACA, which was enacted into legislation in
2010, and its impact, current and future, to the District.
The District is currently conducting a Request for Proposal (RFP) for benefits broker
services. Once the District awards an agreement for these professional services, staff
will consult with the appointed broker to conduct an audit to ensure the District's
compliance with the ACA and to develop benefit strategies in regards to the ACA going
forward.
HISTORY AND OVERVIEW
The ACA was enacted with many provisions being phased in over an eight -year period.
The table below reflects an overview of the changes for large businesses (more than 51
employees) in 2010 through 2018:
Provisions Effective 2010
• Dependent coverage increased up to age 26
• Early Retiree (under age 65) Reinsurance Program: Reimbursements to
employers who cover early retirees
• Nondiscrimination: Employers cannot have different eligibility periods, different
contribution amounts, or more generous benefits packages for management
employees
• Inclusion of preventive services at no cost to consumer
• No rescission of benefits
• No lifetime and annual dollar limits on essential health benefits
• Access to emergency services
Central Contra Costa Sanitary District
Affordable Care Act Update
Page 2 of 3
Provisions Effective 2011
•
Medical Benefit Ratio: Insurers must spend between 80 to 85% of premium
dollars on medical care and services
Provisions Effective 2012
•
Summary of Benefits and Coverage (SBC): All employers must provide
employees with clear and concise SBC's for any health plans
•
Patient - Centered Outcomes Research Institute (PCORI) fee - insurers charged an
annual fee through 2019 to fund medical research
•
Inclusion of women's preventive services at no cost to the consumer
Provisions Effective 2013
•
Flexible Spending Accounts: Annual limit decreased to $2,500
•
W -2 Reporting: Cost of benefits must be reported on all W -2's
•
Exchange Notice: Employer must provide employees notice of healthcare
exchange by October 1, 2013
Provisions Effective 2014
•
Open Enrollment for Health Care Exchange ( "Covered California ") begins in
October 2013 for coverage effective January 2014
Provisions Effective 2015
•
Employer Shared Responsibility: IRS levies penalties against employers who 1)
do not offer coverage to 70 percent of their employees (working more than an
average of 30 hours a week in any given month) and 2) do not offer coverage
which is considered affordable
•
Collect 2015 data for Applicable Large Employers (ALE) reporting: IRS requires
ALE's to identify their full -time employees in order to report on whether they offer
these employees coverage that is affordable and provides minimum value
(Section 6056 reporting) in 2016
Central Contra Costa Sanitary District
Affordable Care Act Update
Page 3 of 3
Provisions Effective 2016
Employer Shared Responsibility: IRS levies penalties against employers who 1)
do not offer coverage to substantially all (95 percent) of their employees (working
more than an average of 30 hours a week in any given month) and 2) do not offer
coverage which is considered affordable
Applicable Large Employers (ALE) reporting: IRS requires ALE's to identify their
full -time employees and report on whether they offer these employees coverage
that is affordable and provides minimum value (Section 6056 reporting)
Provisions Effective 2018
• Excise tax on high cost ( "Cadillac ") insurance plans: Insurers subject to a 40%
excise tax on any employer- sponsored group health plan with costs that exceed
a predetermined level. Thresholds will be updated for 2018 when final regulations
are issued and thereafter indexed for inflation in future years
Staff will be available at the Committee meeting to answer any questions.