1. Alleviating HR’s ACA Headaches August 13, 2015 Lyndsey Barnett, Esq. Graydon Head & Ritchey LLP

2. Affordable Care Act

3. Where We Are At & Where We Are Still Going

4. What Has Occurred Dependent age 26 mandate Opening of exchangesExpansion of Medicaid Community rating Employer Mandate Individual Mandate Small business tax credits Elimination of preexisting conditions Early retiree subsidies Free preventive servicesCost sharing rules

5. Non-Discrimination

6. Reporting

7. Applies to all large employers and to all self-funded employers First reports are due in 2016 for 2015 IRS Forms 1094 and 1095

8. Reporting Deadlines Forms due to employees – January 31 Forms due to IRS if submitted electronically – March 31 Forms due to IRS if submitted in paper (only permissible if fewer than 250 returns) – February 28

9. Reporting – Large Employers Number of FT employees by month Number of total employees by month Employees share of lowest cost premium Whether employee was offered coverage, was it minimum value and affordable

10. Reporting – Self-Funded Employers Name, address and SSN of covered employees, spouses and dependents Months of coverage for each individual General employer information

11. Cadillac Tax 40% Excise Tax Effective in 2018

12. Cadillac Tax – Excess Contributions Single Coverage - $10,200 All other tiers - $27,500 Indexed based on medical inflation Age and gender adjustments Employment status adjustments

13. Cadillac Tax – Subject to Tax Employer & Employee Premium Contributions to Health Plans Contributions to FSAs, HSAs and HRAs On-Site Clinics, EAP & Wellness Programs

14. Cadillac Tax – Not Subject to Tax Limited scope dental and vision benefits Long-term care insurance Accident or disability insurance Liability or automobile medical payment insurance Workers’ compensation

15. Who Are Your Full-Time Employees?

16. Full-Time Employee An employee who works an average of 30 or more hours per week An employee who works an average of 130 or more hours per month

17. Monthly Method

18. 10/15/13 10/15/1510/15/1410/15/16 12/31/171/1/171/1/151/1/16 Measurement Stability = Administrative Period Lookback Method

19. Your Definition

20. How it Impacts the HR Function

21. New Hire Process

22. Waiting Period

23. Seasonal

24. Leaves of Absence

25. Nonpayment of Premium

26. Termination

27. COBRA

28. Action Items

29. Update Documents

30. Communicate Internally

31. Develop Reporting Strategy

32. QUESTIONS??? Lyndsey R. Barnett lbarnett@graydon.com 513-629-2817