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  • ACA Benefits – Measurement periods

Definitions

  • Existing employees work continuously without a break in service of 26 weeks in the measurement period.
  • Dual-measured employee is a variable hour employee who is measured on the IMP will eventually be measured on the SMP. This is referred to as "dual-measured" because the employee will become an existing employee.
  • The administrative period is the period no longer than 90 days that is between an employee's IMP and SMP and the date and eligible employee is offered coverage.
  • The stability period is a one-year period during which the employee is offered medical coverage. It is also referred to as the "Plan Year".
  • The plan year refers to the calendar year stability period from January 1 through December 31 of the same year.

Measurement periods

Measurement period is a one-year period that a variable hour employee’s weekly average hours are measured. Employees are measured over two types of measurement periods.

Standard

Employees who are considered “existing employees”.

Mid-October of one year through mid-October of the following year.

InitialĀ 

Employees who started employment after the start of the SMP.

Employee’s service date through one year.

DualĀ 

Employees who are measured on an IMP and SMP at the same time.

The IMP and SMP measurement periods run concurrently.

Look back

Both the standard and initial measurement periods are on a 12-month “look back” measurement method to determine the weekly average hours for variable hour employees. This measurement method accounts for break in service.

If an employee is determined to have exceeded the 30 hours per week threshold after completing their standard or initial measurement period, they have met the full-time definition under the ACA rule and they may be offered medical benefits.

For assistance in determining your variable hour employee’s measurement period, please contact HR for help.

 

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