Issue Brief: The Affordable Care Act in Participant Direction: Understanding Employer Responsibilities

This April 2013 Issue Brief (amended in January 2014), discusses the employer responsibility mandate under the ACA and its implications for participant direction programs, especially those operating under the Agency with Choice model of FMS and those programs that utilize a Public Authority. Part I defines the concept of large employer and discusses who is likely to be considered an employer under the ACA in multi-employer situations like Agency with Choice and Public Authority. Part II describes employer obligations towards full-time employees, lays out the proposed IRS regulations that will be used to determine when a variable hour employee is considered full-time, and provides examples of how the regulations would apply in an Agency with Choice context. Part III discusses the implications of not providing coverage, including the formulas for calculating the applicable tax penalties.