The rush to implement the Affordable Care Act, which is generating billions for insurers, hospitals and technology vendors, also looks like a boon for staffing companies, whose share prices have soared. But some suggest that exceptions for temporary employees could leave holes in the health law’s expanded coverage…
[I]n regulations issued last year the IRS left an opening for employers of “variable-hour” labor such as temp agencies. If it’s not clear upon hiring that an employee will consistently work more than 30 hours weekly, companies get up to 12 months to determine whether she is full time and qualifies for health benefits — even if she does end up working full time. Few temps last 12 months.
“The overwhelming majority of temporary help workers, even if they were working full-time on a weekly basis for a number of months, wouldn’t be covered because of that 12-month look-back period,” said the Upjohn Institute’s Houseman. The rules, she added, “were written in a very favorable way for the temporary help industry.”
Source: Kaiser Health News.