Are you worried that, if you use the look-back measurement method to determine employee eligibility for health care coverage, you may be obligated to offering some employees coverage in their stability period when their hours drop below 30 a week?

Do not sweat stability periods. What they really represent is a catch-up period, had an employer used the monthly measurement method.

If you took this same employee and were under the monthly measurement method, they would have been eligible for coverage from the first month their hours of service were at least 130. Because they were eligible based on the look-back method, it’s reasonable to assume that they would have been deemed full-time from the beginning and, therefore, would have been offered coverage.

The stability period is a deferral of the employee’s eligibility for employer-sponsored health coverage.

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Last Review:  5/17/2017 – Revision: 2.0

Applies To:  ACA Reporting Requirements, ACA Compliance solution

Categories:  Company Setups

Keywords:  Look-back