Requirements in the Affordable Care Act, or ACA, may impact staffing insurance costs depending on the size of the company. Several factors, including calculating whether the agency employs more than enough people to trigger offering health insurance, is more complicated due to the temporary nature of the work assignments.
Health Care Insurance Considerations
Several factors may be considered when determining requirements regarding providing health insurance.
- Who is the employer? Particularly for longer term assignments, is the client or the agency considered to be the employer required to provide health insurance? IRS rules may be referenced to determine who is the employer under ACA standards, regardless of the language in the staffing contract.
- How many full-time equivalent workers are employed? The ACA defines a full-time employee by the number of weekly, monthly, or yearly hours worked. Since temporary employee schedules may vary depending on the assignment, one may refer to IRS look-back provisions as an alternative method for determining full-time limits.
- How will the cost of health insurance impact billable rates? Insurance rates may vary depending on coverage plans and the number of enrolled employees.
Meeting ACA Requirements
Consulting with a knowledgeable and experienced expert regarding health insurance can ensure the agency is meeting staffing insurance requirements. Ongoing policy reviews may also be helpful as the ACA matures and more is known about the impact of the law on employment agencies.