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Affordable Care Act

On March 23, 2010, the federal government passed the Patient Protection and Affordable Care Act (PPACA).  PPACA (also known as Health Care Reform or Affordable Care Act) is a set of laws designed to increase access to health insurance.  A key provision of this law that takes effect January 1, 2014 requires all individuals to have minimum essential health coverage or else be subject to a tax penalty.  This rule is often referred to as the Individual Mandate.

Regulations recently issued by the federal government require plan sponsors (including Wake Forest University) to provide notice of the Marketplace Coverage Options to all employees.   The Marketplace is where individuals and smaller employers may go to purchase health insurance coverage.   Open enrollment for health insurance coverage through the Marketplace begins October 1 for coverage starting January 1.  While the Marketplace gives individuals more options, it is anticipated that most individuals will continue to obtain coverage through their employer.

Wake Forest University will continue to offer our health plan. Please note that the Employee Only Value Plan, meets the minimum essential value and affordability requirements according to the ACA standards. For this reason, the majority of our employees will not be eligible for subsidies through the Marketplace.  The “New Health Insurance Marketplace Coverage Options and Your Health Coverage” notice provides basic information about the Marketplace and about health insurance offered by Wake Forest University.  You may contact Human Resources by e-mailing or calling 336-758-4700.

Beginning July 1, 2015, the Affordable Care Act (ACA) requires us to:

  • track all hours worked for existing and new employees at Wake Forest to determine if they meet the ACA definition of full-time employee (work at least 30 hours a week on average)
  • offer medical coverage to existing employees that worked at least 30 hours a week on average during the initial measurement period (07/01/2014 – 04/30/2015)
  • offer medical coverage to existing employees that worked at least 30 hours a week on average during the standard measurement period (04/15 – 04/16; going forward)
  • offer medical coverage immediately to new employees that are hired to work at least 30 hours a week on average at the onset of employment beginning July 1, 2015
*This applies to faculty, staff, part-time faculty and staff, adjuncts, temporary staff, working retirees, and students.
*At the time hire, if the number of hours an employee will be working is unknown, Wake Forest will track their hours to determine if they are full-time, and then offer medical coverage, if applicable.

If we do not offer medical coverage to individuals that meet the ACA definition for full-time employment, then we are required to pay a $2,000 penalty per full-time employee at Wake Forest, which would result in a multi-million dollar penalty for each year we are not in compliance.

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