Agenda - 05-13-2014 - 2 - Laserfiche WebLink

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Health Care Reform and Health Insurance for Temporary Employees Background 5 Attachment B The Affordable Care Act (ACA) "Employer Mandate" to offer coverage to full -time employees becomes effective January 1, 2015. This requirement has the potential for increased financial liability for Orange County because employers are required to provide health insurance for all full -time employees or face penalties. A full -time employee is defined as one working an average of 30 hours a week. This requirement is often referred to as the "Play or Pay" component of health care reform, and applies to all full -time County employees, regardless of temporary or permanent status. The County will be responsible for providing health insurance benefits to any employee who works an average of 30 hours or more a week during a 12 month period. Temporary employees who work an average of 30 hours or more must be offered health insurance coverage under the ACA beginning January 1, 2015. Departments have been monitoring employee hours to limit the use of temporary employees over the past year. There are currently four employees who have worked an average of more than 30 hours /week in the past twelve months. The County will be required to offer health insurance to all full -time employees, including dependent coverage, as defined by the ACA OR pay a monthly penalty. Departments will be charged if temporary employees become eligible for health insurance. Financial Impact Individual costs for the County for each temporary employee that must be covered range from a minimum of $814 to a maximum of $1,498 per month based on 2015 projections. Penalties for failing to provide health insurance to any qualifying employee would be approximately $138,300 a month.