From 30 Employees to 80?

[kahlestyle]

I think I know the answer to this, but my carrier rep didn't and gave me pause:

we have a group we inherited covering only 30 of their 80 eligible ee's out of compliance with a june renewal

are they subject to the above 50 penalty if they have to wait until june to add the other 50 ee's (carrier hasn't given us guidance on whether they will allow this)

 

[JosephDeacon]

Are they a calendar year or a contract year plan?

When does their fiscal year end?

 

[kahlestyle]

contract year and june year end

 

[Ann H]

The penalty is effective 1/1/2014 no matter when the group renewal date is.
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I forgot to say that there is transitional relief for groups with certain qualifications. I'm not at my office right now so just Google it to look up the qualification rules.

 

[kahlestyle]

this onion is unraveling after further thought

ok, agreed group is subject to penalty on jan 1
but lets say all 50 ee's currently uncovered decide to pay the penalty since not eligible for subsidy

how then is eligibility affected? and will that knock it down to a small group under 50 not subject to the penalty? might a carrier say no to a group with covering 30 of 80 even though they have no control on ee's paying penalty? is eligibility even in play jan 1 with indiv GI?

I may be overthinking this

 

[stuy119]

You're overthinking this because your post makes no sense, even when I try to reconfigure your thoughts into something coherent.

Once they face a penalty, paying the penalty won't make them compliant to not have a penalty. (What?)

You can't have a carve-out. Period.

 

[kahlestyle]

2 different penalties I didn't make clear, sorry
I was referring to 50 ee's paying INDIV MANDATE penalty of 1%, electing away from affordable group coverage
its not a carve out if indiv ee's are allowed to elect no coverage and pay the 1%, or at least that's my question