By Bonnie Bochniak

Recently another delay was announced in regards to the Affordable Care Act (ACA) by the U.S. Treasury Department, on February 10th, 2014.  The U.S. Treasury Department states that, approximately 96 percent of employers are small businesses that have fewer than 50 workers.
 
This newest change to the ACA will allow more transition time for businesses ranging from 50-99 full time equivalent (FTEs) employees, and also loosen the leash on those employers with 100 or more FTEs in offering healthcare, temporarily.

To permit a more gradual phase-in for employers, highlights from the final rules state that:

–To be eligible, an employer must go through a certification process stating that during the time-frame beginning February 9th, 2014, and ending on December 31, 2104, the employer does not reduce the size of its workforce or the overall hours of service of its employees in order to appease the workforce size provision.

-The employer responsibility provision will generally apply to larger firms with 100 or more FTEs starting in 2015 and employers with 50 or more full-time employees starting in 2016.

-To prevent a payment for failing to offer health coverage, employers must offer coverage to 70 percent of their full-time employees in 2015 and 95 percent in 2016 and beyond.  In addition, for example, this will aid employers that may want to only offer coverage to employees with 35 or more hours, but not yet to that sector working 30-34 hours.

-Employers may establish a six-month period in 2014 to count employees to determine if the mandate applies for the following year.  If the employer uses the last few months of the year as its measurement period for applicability, the employer will not have to have a compliant plan in place for all employees by January 1st, 2015. The employer will not be subject to penalties for the first three months of the year if such an employer establishes a compliant plan and offers it to all eligible employees by April 1st, 2015.

-The rule that employers offer coverage to their full-time employee’s dependents will not apply in 2015 to employers that are taking steps to set up for such coverage in 2016.

-It retains the requirement for an employer to use when categorizing an employee with a break in service as a “rehire” with regard to the coverage rules, but reduces the length of the break in service required before returning employee may be treated as a new employee from 26 weeks, to 13 weeks. This does not apply to certain educational organization employers. To avoid educational employees being treated as rehires after summer break, the 26 week window is applied.

As always, please contact our government relations team if you have any questions.  By phone: 586-393-8800 or by email: bbochniak@michbusiness.org.

New consent agenda saves between 6 to 8 weeks of processing time.

As cold as it is, spring and summer are on their way! The Michigan Liquor Control Commission (MLCC) began last year a new consent agenda permission process allowing for quicker turnaround time for outdoor service requests from existing on-premises locations. This was another step further in the consent agenda process that was started at the MLCC over two years ago.

Previously, outdoor service permissions were applied for and assigned to an Enforcement Investigator as the initial step of the investigation process. Investigators, on most occasions, have an extensive caseload of priority investigations and complaints that would restrict their ability to contact the establishment, conduct the investigation, and submit the investigative report on the outdoor service request. The next steps in the process were to forward the investigation to the Licensing Division for review and completeness, preparation for consideration by the Commission, and docketing the request for a Licensing Meeting. The last steps in the process were to prepare an Order of the Commission, release the Commission Order, and completion of a final inspection by the Enforcement Division.

“This consent agenda makes it more efficient and faster when compared to the former procedure,” said Andrew Deloney, Chairman of the MLCC. “This arguably saves between 4 to 8 weeks of processing time and is yet another expansion of the quick and easy consent agenda process which we started over a year ago. The process has been great, it’s allowing for quick and easy approvals, and now we’re expanding it further with this new opportunity.”

In order for a licensee to be considered for the outdoor service permission consent agenda, the licensee must submit the following information:

• Outdoor Service Application for Permission
• A detailed diagram of the currently licensed premises which includes the proposed Outdoor Service area. Exact measurements of the proposed Outdoor Service area must be included. Ingress/Egress must be included on the diagram. The licensee must describe how the proposed area will be well-defined and clearly marked.
• The proposed Outdoor Service area must be directly adjacent (connected) to the licensed premises with direct access to the proposed area.
• A property document that indicates that the licensee has control over the proposed area, i.e. warranty deed, lease agreement, letter or resolution from the local governmental unit indicating that the licensee has permission to use the municipally owned area, etc.

The request will then be submitted and put on the consent agenda if the following is met:

• The licensee does not have any pending violations
• The licensee is currently in good standing and the license is not currently in escrow
• The Commission is provided with a completed application
• The Commission is provided with a detailed diagram with exact measurements and ingress/egress markings
• The Commission is provided with a property document which indicates the licensee’s control over the proposed area
• The proposed Outdoor Service area is adjacent (connected) to the currently licensed premises and is directly accessed from within the establishment
• The proposed Outdoor Service area is not accessed by crossing an easement or thoroughfare
• The proposed Outdoor Service area does not exceed 10,000 square feet
• The proposed Outdoor Service area is not near a body of water, a sporting venue, or activities such as horseshoes, volleyball, softball, etc.

If the application does not qualify for the Consent agenda, an investigation by the Commission’s Enforcement Division will be conducted.

Under the new consent agenda process, if no issues exist, the licensee may be approved for this permission within 1-3 business days, which is subject to a final inspection by the Commission’s Enforcement Division.

There is no fee required for this permission or the new expedited process.

For more information about the MLCC, please visit www.michigan.gov/lcc. Follow us on Twitter www.twitter.com/MILiquorControl, “Like” us on Facebook.

Michigan Department of Licensing and Regulatory Affairs, P.O. Box 30004, Ottawa Bldg., 4th Floor, Lansing, MI 48909 – LARA is an equal opportunity employer/program

Transition Policy

Recently President Barack Obama broadcast an executive decision to the American people stating that if they wanted to maintain their current healthcare plan, they could do so for an additional year. This was done in response to many concerns raised by individuals and groups who had received notification that their current plan would be discontinued as it was not complaint with the ACA requirements.

The Department of Health and Human Services (HHS), which is tasked with administering the new healthcare law, issued a letter to state insurance commissioners. In the letter it details the “transitional policy” that the federal government is offering. It is critical to note that this new guidance by the President is an option, not a requirement. All states and their insurance commissioners, along with the insurance providers have to make that strategic decision to continue current plans.

Details of the new policy:

-Issuers would be permitted, but not required, to extend individual market and small group market policies that were in effect on October 1, 2013 without amending the policies to meet all ACA standards. The transition policy cannot apply to individuals or small businesses that obtain new coverage after October 1, 2013.

-This transition policy does not impact those who are uninsured or have Medicare, Medicaid or large employer coverage.
 
-The transition policy would apply to renewals of existing business occurring from January 1, 2014 until October 1, 2014. HHS indicated that it will re-evaluate this policy in 2014 and could extend it to additional renewal months.

– If issuers choose to use this transition policy to extend existing coverage, they must provide notification to enrollees in the extended coverage that includes the following:

1. Any changes in the options available to them which of the specified ACA market reforms would not be reflected in any coverage that continues their potential right to enroll in a qualified health plan offered through a Health Insurance Marketplace and possibly qualify for financial assistance

2. how to access such coverage through a Marketplace;

3. and their right to enroll in health insurance coverage outside of a Marketplace that complies with the specified market reforms.

-Policies that are extended using this transition relief are not technically grandfathered. The HHS guidance indicates that they will not be expected to comply with certain ACA market reforms, including:

• The requirement to limit premium variations to age, tobacco use and geography
• Essential health benefits (EHB)
• Actuarial value metal levels
• Restrictions on cost sharing
• Guaranteed availability of coverage
• Guaranteed renewability of coverage
• Non-discrimination against a provider operating within their scope of practice
• Non-discrimination in coverage for individuals participating in approved clinical trials
• Prohibition of pre-existing condition exclusions or waiting periods for adults (exclusion would not apply to small group)
• Prohibition on health status discrimination (exclusion would not apply to small group)

As this new policy continues to unfold MBPA will keep you up to date as to what your options are in planning for you and your employee’s healthcare options. If you have any questions please contact our Government Relations Team at bbochniak@michbusiness.org or by phone at : (586) 393-8800.