What is the Patient Protection and Affordable Care Act (PPACA)?
The Patient Protection and Affordable Care Act (PPACA), commonly referred to as Obamacare or the Affordable Care Act, is a United States federal statute signed into law by President Barack Obama on March 23, 2010.
Under the provisions of the PPACA, any US employer that employ 50+ full-time employees must offer affordable health insurance that provides a minimum level of coverage to its 'bona fide' or eligible employees. Bonafide employees are defined as those individuals that work at average of 30 hours per week.
How does this impact Franklin CommunitySchools?
Franklin Community Schools must become compliant with the new PPACA regulations by May 1, 2013. Prior to April 19, 2013, Franklin Community Schools will determine which non-benefits eligible positions will be offered health insurance (bona fide employees), and which positions will be held to fewer than 30 hours per week and thus remain non-benefits eligible. For those that become benefits eligible, the coverage must begin as of January 1, 2014 in order to be compliant with IRS regulations. Franklin Community Schools received final clarification from our health insurance trust on PPACA requirements on March 5, 2013. Data collection and planning has been taking place over the past several weeks by your corporation leading up to the April 10, 2013 support staff meetings.
How does this impact me?
Some employees will qualify to be covered under our current health insurance plan. Some employees will have their hours reduced to fewer than 30 hours beginning on April 29, 2013. For those employees whose hours will be reduced by May 1, 2013, their hourly rate will be adjusted upward for one month to account for the loss in pay caused by the reduction. FCS will continue to share information as quickly as decisions are made.