What Will You Do When Mini-Med Plans Don’t Comply?
In the past, many government contractors have offered their workers mini-med programs in an effort to both contain costs and offer their workers some level of insurance coverage. However, the PPACA requires that in order to comply, medical plans must not have an annual limit or maximum dollar amount of coverage beginning in 2014. These rules apply to mini-med plans which are offered by employers as an alternative to major medical insurance.
While the HHS has granted waivers to some existing mini-med plans, this is only to minimize disruption in coverage for workers who now have this type of plan. The Office of Consumer Information and Insurance Oversight (OCIIO) has issued a memo which requires that a notice be placed at the front of plan materials, which informs employees that the plan does not meet the minimum standards of the Patient Protection and Affordable Care Act.
Penalties for non-compliance are steep, and – in our opinion – there’s no reason to get your company in a situation where it’s subject to them. By taking steps now to find and implement major medical for your workers, you can eliminate worries over compliance and fines. Since prevailing wage contracts include funds specifically intended to provide fringe benefits such as medical insurance, using this money as the law intended just makes sense. Workers will no longer have the argument that they don’t want medical coverage – they will be required to have it. Faced with the choice between having to visit an exchange, apply for subsidies, and navigate regulations themselves or having coverage provided by their employers, it’s a pretty safe bet most would prefer the latter option.
Have questions about preparing to comply with PPACA? We can help. We offer major medical insurance through several well-known providers and networks, and we understand the specific needs of the government contractor market. Bona fide benefits plans for prevailing wage contractors are what we’ve specialized in for over 30 years, and we’re still leading the industry as we look for opportunities to assist government contractors with benefits, compliance, and saving money.