WASHINGTON, D.C., April 3, 2014 — The Big “I” today applauds the U.S. House of Representatives for passing H.R. 2575, the “Save American Workers Act of 2013,” by Rep. Todd Young (R-Ind.), in a bipartisan vote.

 

H.R. 2575 would change the definition of a full-time employee (FTE) under the Affordable Care Act (ACA) to an individual who works 40 hours per week. The legislation targets the employer mandate provision of the ACA that says “large employers” must provide coverage to employees.

 

“Independent agencies serve many clients who have struggled with the prospect of complying with the employer mandate, and in particular the 30 hour per week definition of a FTE,” says Robert Rusbuldt, Big “I” president & CEO. “H.R. 2575 is a common-sense fix and we applaud the House, particularly Rep. Young, for advancing this bipartisan effort.”

 

Originally slated to go into effect in 2014 in tandem with the individual mandate, the employer mandate requires businesses with 50 or more FTEs to provide affordable (premiums no greater than 9.5% of income) coverage of at least a Bronze level plan equivalent (60% actuarial value) to its employees. While the provision has many problems, the most glaring concern is that the definition of a FTE is an individual who works an average of 30 hours per week as opposed to the traditional 40 hours per week.