Employee Benefit News for School, City and County Employers

Feds work on definitions of public employees

Written by Valerie Ortiz | Aug 31, 2012 9:06:29 AM

Under the Patient Protection and Affordable Care Act, the federal government places employer penalties on bodies that fail to offer required benefits and health insurance coverage to their employees as is stated in the law.

Many employers, including school districts and local governments, are waiting on the U.S. Treasury Department to see how the agency will define a full-time employee and hours of service to determine when certain requirements are met by employers and when a penalty will be implemented. Employers are looking for the definitions of full-time employees and hours of service to help them avoid financial penalties. Employers also want there to be no limits on the flexibility of finding cost-effective health insurance coverage for workers. Employee unions and groups, on the other hand, hope no loopholes will be created by the language of the provision, Bloomberg reported.

Employers across the country are struggling to understand all of the guidelines they must meet to stay in compliance with the PPACA standards and requirements. Earlier this month, employers and healthcare providers alike met to discuss strategies for keeping health insurance costs low so employers could remain compliant with the law without breaking budgets or laying off workers. The Charlotte Chamber Healthcare Summit brought together employers and health professionals to discuss the impact the law will have on employers, how to control insurance costs and ways the healthcare industry is also working to reduce spending, The Charlotte Observer reported.