Title
Adoption of Resolution Electing to be Subject to the Public Employees' Medical and Hospital Care Act at an Equal Amount for Employees and Annuitants to Include Non-Represented, Part-Time Employees into the CalPERS Public Employees Medical and Hospital Care Act (PEMHCA) Health Program Due to the Employer Shared Responsibility Provision "Pay or Play" Rule of the Affordable Care Act "ACA". (Human Resources 2510)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Adoption of Resolution Electing to be Subject to the Public Employees' Medical and Hospital Care Act at an Equal Amount for Employees and Annuitants to Include Non-Represented, Part-Time Employees into the CalPERS Public Employees Medical and Hospital Care Act (PEMHCA) Health Program Due to the Employer Shared Responsibility Provision "Pay or Play" Rule of the Affordable Care Act "ACA"
BACKGROUND
The 2010 Federal Patient Protection and Affordable Care Act, ("ACA") requires employers to offer minimum essential medical coverage that is affordable to all full time and qualifying part-time employees who work 30 or more hours per week and their dependents, or risk penalties. On April 15, 2014, the City Council approved the adoption of a Resolution stating the City's intent to comply with the legal requirements under ACA.
The City offers medical coverage to eligible employees under the Public Employees Medical and Hospital Care Act (PEMHCA), which is administered through a contract by the California Public Employees Retirement System (CalPERS). In order to avoid compliance violations, the City is now required to make modifications to the CalPERS contract to create a new medical benefit group for certain Non-Represented, Part-Time Employees. Failure to modify the contract will prevent the City from offering medical coverage to qualifying part-time employees. The City's only part-time employees currently working 30 or more...
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