The Patient Protection and Affordable Care Act (ACA) a/k/a “Obamacare”
Aug 29, 2012
In the wake of the United States Supreme Court ruling, the Individual Mandate in the Patient Protection and Affordable Care Act (“ACA”) is scheduled to take effect on January 1, 2014. The ACA includes important provisions that will affect motor carriers. Specifically, the determination of employment status could play a significant role in reallocating costs from an owner operator to a motor carrier. As defined in the ACA, a “large employer” must provide health care coverage to employees or face a number of penalties for noncompliance. Classification as a “large employer” is based on the number of full-time employees, which might include owner-operators reclassified as employees. If an owner operator is reclassified as an employee, the owner operator would not be required to maintain the minimal coverage pursuant to the Individual Mandate. Instead, as an employee, the owner operator could be covered under the motor carrier’s employee health plan. Under the Employer Mandate of the ACA, if an owner operator is reclassified as an employee, the motor carrier may not only be responsible for providing coverage to the driver, but may also be subject to penalties stemming from the prior failure to provide coverage for the same individual.
The firm has compiled a memorandum discussing the ACA and its anticipated impact on motor carriers which we are making available at a flat fee of $95. If you would like to request a copy of the memorandum, or have any questions related thereto, please contact Allison Smith at email@example.com or (317) 637-1777.