Denver Staffing Agency - ACA FAQs 2 of 8 – Oct. 9, 2013
- 10/14/13 |
- 5:58 PM
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FAQ 2. Do Staffing Firms Plan to Offer Health Insurance Coverage to Their Temporary Employees?
Yes. Historically, staffing firms have faced challenges in providing health insurance coverage for temporary employees because of the high turnover and insurance carriers’ fear of adverse selection. But the law’s guaranteed availability rules and the flexible minimum essential coverage requirements mean that staffing firms likely will have ACA-compliant insurance products to offer their temporary employees in 2015.
ASA surveys show that most staffing firms intend to offer their full-time temporary employees at least minimum essential coverage. Staffing firms employing higher skilled, higher-paid contract employees generally should be able to offer major medical plans that are both affordable and satisfy the minimum actuarial value test.
Some staffing firms may offer plans covering preventive and wellness services that only provide minimum essential coverage. Such plans are relatively inexpensive and are designed to be affordable to temporary employees, but they do not provide minimum actuarial value.
An employee needing broader coverage could therefore seek subsidized health insurance coverage through a public exchange—which, if granted, would subject the staffing firm to a $250 monthly excise tax with respect to that employee.
Regardless of the Coverage Offered, the Great Majority of Staffing Firms Will Incur Significant New Costs
Their exposure to those costs will vary widely depending on multiple factors, including:
- the type of work their employees perform,
- their full-time status and tenure,
- their wage rates,
- the type of health insurance plan offered to them, and
- how many participate.
Source: American Staffing Association, Oct. 9, 2013
The information in the article above is intended for general education purposes only and should not be relied upon as a substitute for professional, legal, accounting, medical and/or insurance advice.