Question of the Week

Posted by BAS - 17 September, 2015

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Q.-We are using the lookback method to determine our full-time employees. Is there a set measurement period that we have to use? 

A.- You have leeway to establish your standard measurement period, administrative period and stability period. We have found that most employers work backwards to set their schedules. They make their stability period 12 months equal to the dates of their health plan year. They establish an administrative period of not more than 90 days before the start of the plan year. Then, they have the measurement period for 12 months before the start of the administrative period. 

The standard measurement period must be at least 3 and not more than 12 consecutive months. The administrative period must start after the end of the standard measurement period and cannot last more than 90 days. The stability period must equal the length of the measurement period, or 6 months, if longer.


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