Support through your toughest HR challenges: A network of 285,000 HR professionals.
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
When the Affordable Care Act was first passed, many employers were under the impression that if they were happy with their current health plan offerings, they could keep them intact. But when they examined the fine print, “they soon understood that keeping their current health plan offerings and maintaining their grandfathered status would not be an easy task,”
Amy M. Gordon, a partner in the employee benefits practice at law firm McDermott Will & Emery, told
With respect to grandfathered health plans, the guidance explains that numerous types of changes will cause a plan to lose its grandfathered status, Gordon noted, including:
“Once a plan loses its grandfathered status, it cannot get it back,” Gordon emphasized. “Although employers that self-insure their employees’ group health coverage will not discontinue that coverage, they will need to add additional coverages once they lose their grandfathered status.” For instance, nongrandfathered group health plans must:
“These do not seem like big changes, but each will drive up the cost of coverage,” Gordon said.
In addition, to avoid the shared-responsibility (or “pay or play”) mandate that takes effect Jan.1, 2015, for calendar-year plans, an employer’s group health plan must provide
affordable coverage that meets the minimum value requirements. “This means that for employees whose household income falls within 100 to 400 percent of the federal poverty line, those employees may not be charged greater than 9.5 percent of their annual household income for individual health coverage,” Gordon explained.
is an online editor/manager for SHRM.
Related SHRM Articles:
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Talent Attraction Study: What Matters to the Modern Candidate
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 3,200 companies