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Overview

The Affordable Care Act was signed into law March 23, 2010.  This legislation puts in place comprehensive health insurance reforms that are scheduled to roll out over a four year period.  During the month of July the administration announced that it intends to delay enforcement of the employer manda under the ACA until January 2015.  The following resources are available to inform members of the Texas Employees Group Benefits Program (GBP) about changes currently in place and the future impact of the law.

The Emyees Retirement System has developed a comprehensive overview of Affordable Care Act and what it means to state employees. 

A timeline of the law can be found on slide 9 of this comprehensive presentation written by Littler. This timeline provides a comprehensive overview of the Affordable Care Act. A complete summary of the law can be read at HealthCare.gov.

Key Components

· Individual Exchange - Mandates that all Americans, with some exceptions, maintain minimal essential coverage or face a tax.  The individual mandate became law October 1, 2013.  All Americans who file income tax returns must complete an additional IRS tax form. 

· Insurance Exchange - Establishes new state-based insurance Exchanges through which individuals and small employers can purchase health insurance.     Low and moderate income individuals (those with incomes between 100% and 400% of the federal poverty level) that do not have access to affordable employer-sponsored insurance will be eligible for federal premium tax credits and subsidies toward private insurance through and Exchange.  Texas has chosen not to participate in a state insurance exchange.

· Medicaid Expansion - States may expand Medicaid eligibility to individuals up to 133% of federal poverty level.  Texas has chosen not to participate in a Medicaid Expansion.

· Employer Mandate - Employers with the 50 or more full-time employees (or the equivalent when considering part-time and seasonal employees) must provide all full-time employees with affordable health insurance coverage of at least a minimum value.  Employers that fail to do so must pay a tax penalty if any of its full-time employees obtain Exchange coverage and a federal premium tax credit.  The penalty may be as high as $2000 per full-time employee.  Employees who work 30 hours per week could be considered full time under the act.

CUPA (Colleges and Universities Professional Association for Human Resources) provides up to the date information regarding the law.  The most current and debated issue is related to part time employees and their eligibility for full time insurance.  At this time clear guidence has not been provided by the IRS. The Office of Human Resources monitors various organizations and agencies such as CUPA, ERS, and the IRS daily for current information.  CUPA will provide the most up to date information as it relates to higher education.  A survery was recenlty published by CUPA.  To review and order results go to the CUPA survey section of the website. 

Additional Resources

 Jackson Lewis 

ACA 101

page updated 4/22/2014 10:18 AM