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The Patient Protection and Affordable Care Act’s (PPACA) employer “shared responsibility” mandate, which was delayed last year until 2015, is now being phased in. However, midsize employers will not be subject to “play-or-pay” penalties until 2016, the Treasury Department announced on February 10, 2014.

  • Mid-sized employers are defined as those with 50 to 99 full-time employees, which makes up about 2 percent of all employers according to the Treasury Department.
  • Businesses with fewer than 50 full-time equivalent workers, which make up about 96 percent of all employers, are not subject to the play-or-pay provisions.

Another new rule for organizations with 100 or more employees (about 2 percent of employers) phases in coverage over the next two years. To avoid penalties, these employers must offer coverage to 70 percent or more of their full-time employees in 2015 and to 95 percent or more of their full-timers in 2016 and beyond.

The new final rules also provide clarifications on teachers, adjunct faculty, students in work-study programs, seasonal employees, and volunteers to address how they should be properly counted under the Affordable Care Act.

Learn more about “Employer Shared Responsibility Regulations” related to the Affordable Care Act in this bulletin provided by Allen Insurance and Financial of Camden, Maine (.pdf): Employer-Mandate-Final-Rules-02122014.pdf

You can also visit the Federal Register for more information or contact KMA.