Don't miss our blog series, Compliance Matters! In this blog, you can test your knowledge about the Affordable Care Act (ACA). It has been several years since the Affordable Care Act was implemented. How much do you know about the health care law? Take our quiz and find out.
Number of correct answers: 9 or more – ACA Guru Status, 8 – Impressive! 7 – Not bad!, Less than 7- Good effort…you may want to ask your Alera Group consultant for a refresher.
To learn more, join our upcoming Q1 Compliance Update webinar to get your ACA questions answered.
1. The Affordable Care Act was signed into law in what year?
2. An employer is assessed a shared responsibility penalty when:
a. Coverage is considered unaffordable for the lowest cost plan
b. An employee enrolls on the exchange
c. An employee receives a subsidy
d. All of the above must be true
3. For purposes of the employer shared responsibility provisions, the definition of full-time employee is an employee employed on average at least:
a. 120 hours of service per month
b. 40 hours of service per week
c. 130 hours of service per month
d. 2080 hours of service per year
4. Minimum Essential Coverage & Minimum Value are the same thing.
5. The three affordability safe harbors are:
a. Rate of Pay, Federal Poverty Line, Average Cost of Living
b. Rate of Pay, W-2 Wages, Hour of Service
c. Rate of Pay, W-2 Wages, Federal Poverty Line
6. There are two methods for determining full-time employee status:
a. Look-back measurement method & monthly measurement method
b. Look-back measurement method & hour of service measurement method
c. A measurement method is only used for variable hour employees
7. The look-back measurement method includes:
a. A measurement period for counting hours of service (e.g. standard measurement period)
b. An administrative period (optional) that allows time for adding/dropping coverage
c. A stability period when coverage is provided if the employee averages full-time hours during the prior measurement period
d. All of the above
8. ALE reporting requirements apply to someone if they own two separate businesses with different legal names and different FEINs.
a. Yes, if the combined businesses are under common ownership with common control and have 50 or more full-time employees.
b. No, if both businesses have less than 50 full-time employees in each business
9. An employer who does not have 50 or more full-time and full-time equivalent employees, does not have ACA reporting requirements.
a. True, ACA reporting is only for employers with more than 50 employees
b. False, ACA reporting is required for employers under 50 employees who offer a self-funded medical plan
10. Which of the following employers must comply with the requirement for reporting the value of health benefits on an employee’s W-2? (Box 12, Code DD)
a. Employer’s with 50 or more employees
b. No one. This requirement was repealed.
c. All businesses regardless of size
d. Employers required to file 250 or more W-2s
- The Five Ws and One H of ACA Affordability Safe Harbors
- The Five Ws and One H of ACA Measurement Methods
The information contained herein should be understood to be general insurance brokerage information only and does not constitute advice for any particular situation or fact pattern and cannot be relied upon as such. Statements concerning financial, regulatory or legal matters are based on general observations as an insurance broker and may not be relied upon as financial, regulatory or legal advice. This document is owned by Alera Group, Inc., and its contents may not be reproduced, in whole or in part, without the written permission of Alera Group, Inc.
This article was last reviewed and up to date as of 02/08/21.