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Tag: Patient Protection and Affordable Care Act (PPACA)

Forever 21 Bumps Fraction Of Workforce Below PPACA

The teen-focused clothing maker has cut back all its line workers to 29.5 hours a week in an apparent move to get around the health care benefits trigger of the Patient Protection and Affordable Care Act.

The company didn’t cite the PPACA as the impetus for its decision — quite the opposite. It insisted that the decision was made “independent of the Affordable Care Act.” Rather, it was strictly the result of an internal audit of stores that indicated a new workforce design was needed, it said. As part of its response, Forever 21 also noted that it has promoted and converted 421 part-time store employees to full-time status since March of this year.

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IRS Issues Final Rule on the Individual Mandate

On August 27, the Internal Revenue Service (IRS) issued a final rule for the individual mandate provision of the Patient Protection and Affordable Care Act (PPACA).

As a reminder, the individual mandate requires most individuals to have minimum essential coverage in 2014 or pay a penalty. The penalty is called a shared responsibility payment. Some individuals may qualify for an exemption from the mandate so they will not be required to have coverage or pay a penalty. An individual seeking an exemption may do so in advance through an application submitted to the Exchange/Marketplace or after the fact with the IRS through the tax filing process. An applicant can apply for multiple exemptions simultaneously.

The final rule, which is largely consistent with the proposed regulations, confirms the following:

  • What qualifies as minimum essential coverage
  • What wasn’t addressed in regard to minimum essential coverage
  • Who is exempt from paying the penalty
  • How penalties will be determined and paid

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UPS Won’t Insure Spouses Of Many Employees

UPS will follow thousands of other companies this fall in ending health insurance coverage of employees’ spouses if they can get coverage elsewhere.

Partly blaming the health law, United Parcel Service is set to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere.

Many analysts downplay the Affordable Care Act’s effect on companies such as UPS, noting that the move is part of a long-term trend of shrinking corporate medical benefits. But the shipping giant repeatedly cites the act to explain the decision, adding fuel to the debate over whether it erodes traditional employer coverage.

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Workplace Wellness: Improving Health and Controlling Health Care Spending

According to the U.S. Department of Health and Human Services, chronic disease is responsible for 7 out of 10 deaths among Americans every year. And we know that the costs associated with treating individuals with chronic conditions account for the majority of annual spending on medical care.

Across the country, more employers are learning how nondiscriminatory employer-based prevention and wellness programs can help improve the overall health of our workers and control health care spending—and the Affordable Care Act is making it easier.

The Cost of Chronic Disease and the Benefits of Workplace Wellness

HHS reports that the cost of treatment for those with chronic conditions like heart disease, cancer, strokes, and diabetes accounts for over 75% of our annual medical care costs. In addition to these direct costs, the indirect costs associated with poor health –such as worker absenteeism, reduced productivity, and disability — may be significantly higher. According to the Centers for Disease Control and Prevention (CDC), these productivity losses due to personal and family health issues can cost U.S. businesses $1,685 per employee per year, or $225.8 billion annually.

To view the final rules related to new incentives for employer wellness programs under the Affordable Care Act, click here.

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