ACA Impact on Contingent Labor

Affordable Care Act Impact on Contingent Labor

Please click here for a complimentary copy of our report on the impact of the Affordable Care Act (ACA) on contingent labor.

Across the US, Contingent Labor providers are approaching buyers for price augmentation due to the Affordable Care Act (ACA), however these price changes may not be justified based on the supplier’s situation. This presentation examines the pending impact of the Affordable Care Act on contingent labor providers. The findings are based on recent case work and research performed by Cost & Capital Partners.

  • Implementation of Law– Numerous delays have occurred since the bill was passed and full implementation is now expected to occur in 2016. Contracts should be reviewed to ensure that the most recent timing of the law is taken into consideration.
  • Coverage Requirements– By 2016, all companies with 50+ FTEs must offer affordable (i.e. cost to employee must be less than 9.5% of family income) healthcare that covers at least 60% of medical costs plus 10 essential benefits to their full time employees or face penalties.
  • Penalties– Companies will face a penalty of $2,000 per full time employee minus the first 30 full time employees if they do not offer coverage to their workers. A penalty of $3,000 per full time employee that receives tax credits from purchasing insurance off of the State Exchanges, up to a maximum of $2,000 times the number of full time employees minus 30 will apply if coverage is not affordable or does not meet the minimum requirements.
  • Potential Impact & Analysis Required– Impact will vary by company and across the board increases in markups should not be accepted. Location of work, base wages, existing healthcare coverage costs, and suppliers' projected share of premium costs need to be reviewed to determine if any markup increases are necessary.

Please click here for more information on our approach.