Risk & Business Magazine General Insurance Services Fall 2019 | Page 7

NEW EMPLOYEE BENEFIT • individual insurance coverage purchased on an ACA Exchange; • Nonsalaried employees (i.e., hourly employees) • individual insurance coverage purchased outside of an ACA Exchange (including coverage purchased through a private exchange model); • Employees whose primary site of employment is in the same rating area • • Seasonal employees • Employees who are covered by a collective bargaining agreement (CBA) • • • student health insurance coverage; or catastrophic health insurance coverage. One key restriction to keep in mind is if an employer offers an ICHRA to a class of employees, the employer cannot also offer a traditional group health plan to the same class of employees. EMPLOYEE CLASSES Employers with ICHRAs may make distinctions between different groups of employees, using the following employee classes: • • • Full-time employees Part-time employees Employees who are paid on a salary basis • Employees who have not satisfied a waiting period for coverage • Nonresident aliens with no US-based income • • Temporary employees of staffing firms Any group of employees formed by combining two or more of these classes MINIMUM CLASS SIZE A minimum class size requirement applies if an employer offers a traditional group health plan to some employees and an ICHRA to other employees based on the following classes: full-time versus part- time status; salaried versus nonsalaried status; or geographic location, if the location is smaller than a state. The minimum class size is determined prior to the start of the ICHRA plan year and depends on the employer’s size, as follows: • employers with fewer than 100 employees: at least 10 employees employers with 100–200 employees: at least 10 percent of the total number of employees employers with more than 200 employees: at least 20 employees Whether a class of employees satisfies the minimum class-size requirement for a plan year is based on the number of employees in that class who are offered the ICHRA as of the first day of the plan year. For more information about ICHRAs and how this new benefit could make an impact on your business, please give me a call 219.510.6207 or send me an email at [email protected]. I’d be happy to provide additional information and resources. + Striving to make every day better for business. For information about UnitedHealthcare group plans, and how we’re working to lower costs and improve health outcomes, go to uhc.com/employer. MT-1178974 7/18 7