Lookback Measurement Results

Posted by BAS - 19 November, 2020

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Employers with calendar year health plans that use the look-back measurement method for determining employees’ full-time status should be able to identify who will be considered a full-time employ in 2021 and should be offered health coverage. Analyzing look back results is important to be able to make proper offers of coverage and comply with health care reform.

Under the Affordable Care Act, applicable large employers (those with 50 or more full-time/full-time equivalent employees) must offer their full-time employees health coverage or pay a tax penalty. Employers may use the look-back measurement method for determining full-time status.

Under the look-back measurement method, an employer tracks the employee’s hours of service during a specific look-back measurement period, calculates the average hours per month over that period, and treats the employee as full-time or not full-time during a subsequent stability period. Many employers align their stability period with the plan year. That means for calendar year plans, the measurement period has ended or is ending soon in order to give the employer time to calculate full-time/not-full-time status for the upcoming plan year/stability period.

Employers should calculate and review their look-back results before open enrollment. This calculation/review will enable employers to offer health coverage to those employees who have hours to be considered full-time during the upcoming stability period.

For assistance with ACA compliance or to discuss collecting hours for determining full-time status, contact your account manager or solutions@BASusa.com.

Topics: Health Care Reform (ACA), Affordable Care Act, HR & Benefit Plans, HR & Benefits News


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