Evolving Effects of ACA on Staffing Industry Insurance

Evolving Effects of ACA on Staffing Industry Insurance

Evolving Effects of ACA on Staffing Industry Insurance

The latest buzz about the ever controversial Affordable Care Act (ACA) has stemmed from the prolonged acceptance of so called “skinny” healthcare plans which are most commonly offered by employers in sectors of the economy that employ hourly-wage, short-term and variable-hour workers. Also known as non-minimal-value plans, these healthcare coverage options typically offer group health benefits that only provide support for specific types of medical care at rates that hover around the ACA requirements.

Such plans were originally presented as a short term solution, expected to cease by the end of 2014, however they are currently prevailing among many large employers across the nation and show no indications of phasing out. A Department of Health and Human Services (HHS) fact sheet states that insurance companies can continue offering these “skinny” plans in those states that approve the extension proposed by the HHS. According to ACA documentation any health insurance plan that is legally sold within a state’s boundaries counts as an “eligible employer-sponsored plan.” Thus far over half of the states have opted to allow continued subscriptions to these more economically efficient “skinny” policies for qualified businesses.

While these types of programs technically fail to uphold the ACA mandated coverage levels, they do allow employers relief from the “no offer” penalties of $2,000 for every worker employed over 30 hours, and allow employees to file for government subsidies or tax credit to ease the burden of obtaining additional public healthcare. In some cases employers offering these coverage options could face penalties based on noncompliance with “minimum essential coverage” mandates, so many employers are opting for the two-plan system where they offer the “skinny” plans alongside a high priced comprehensive coverage option for those who are willing to pay higher premiums.

Navigating ACA requirements can be challenging for the staffing industry, but we can help generate a comprehensive strategy that fits your business needs. World Wide Specialty Programs has always had a singular purpose – to design, develop and provide temporary staffing insurance for the staffing industry. Working with over 2,000 insurance brokers nationwide, we know the staffing industry better than anyone, and can provide great options for your staffing industry insurance needs. Please contact us today today for more information about our staffing agency insurance solutions at (877) 256-0468.

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