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What You Need to Know About the Look-back Measurement Method and COVID-19

by Gulfshore Insurance

What You Need to Know About the Look-back Measurement Method and COVID-19The Affordable Care Act (ACA) requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their full-time employees or possibly pay a penalty. This employer mandate is also known as the “employer shared responsibility” or “pay or play” rules.

ALEs can use one of two methods to determine whether employees are full time under the employer shared responsibility rules:

  • The monthly measurement method determines full-time status for each calendar month based on the employee’s hours of service in that month.
  • The look-back measurement method determines full-time status for a longer period of time based on average hours of service during a prior period.

 

The evolving coronavirus (COVID-19) pandemic has caused some confusion and uncertainty in applying the look-back measurement method during periods of layoff, furlough, and COVID-19 related periods of paid and unpaid leave.

This ACA Compliance Bulletin provides information for employers regarding how the look-back measurement method applies to COVID-19 related absences.

Download the Compliance Update

We will continue to share information as it becomes available and keep you informed. If you have questions, please reach out to your Account Manager.Compliance Bulletin – Look Back Measurement