End of company-sponsored insurance. Some employers may, for economic or other reasons, decide not to offer health insurance, pay ACA penalties and send their staff to public exchanges for health care. This approach will undoubtedly generate strong opposition from unions in the negotiations, even if employers can get bogged down until the impasse on the issue of health insurance, which is a subject of mandatory bargaining. Employers who want to end business-related insurance must therefore adapt to intense challenges at the bargaining table, including pressure from unions to continue to sponsor health services or participate in Taft-Hartley plans, union demands on wages or other economic concessions to compensate workers for loss of employer coverage, and union demands for health benefits that workers cannot to get on the stock markets. The economy. When negotiating contracts under the ACA, employers should strive to use the additional costs that the ACA imposes on employers to obtain concessions equal to the benefits of salaried workers and the cost-sharing obligations of these workers. The additional costs of the employer are tangible and real: the ACA asks employers to extend coverage to those who have long been considered part-time workers, to provide coverage that meets many requirements, including preventative, cost-sharing services, to make some mandatory plan changes, to ensure that coverage is affordable, and to stay below the cost thresholds for Cadillac coverage , to avoid costly penalties. The ACA also imposes significant registration and reporting obligations on employers. Employers should consider using these costs to take advantage of significant changes to draft plans, including changes to the deductible and additional bonuses, and lay the groundwork for workers to bear the cost of premiums for higher levels of coverage, provided the plan continues to provide minimum value and affordable coverage.
These types of changes should be incorporated into the employer`s overall economic bargaining objectives. Of course, the trade union and collective agreements (CBAs) process works a little differently, which is why some employers may be disoriented when the reference season is over. If your business depends on union workers to do the job, or if you plan to work with a union, you should know the following about their health care coverage. Health care for active workers is a mandatory bargaining topic under the National Labor Relations Act, and the ACA does not change the employer`s obligation to negotiate with its unions the health benefits of its active and unionized workers. However, the ACA is changing the dynamics of collective bargaining, as employers now face significant penalties and costs related to whether or not health care is provided to more “full-time workers.” Employers should use the ACA`s leverage, such as whether this involves negotiating union exemptions to allow employers to modify and modify their plans, negotiating lower coverage levels to offset the additional costs of expanded coverage, or negotiating the end of coverage under employer-sponsored plans. Coverage levels and draft plan. Employers who, for economic and other reasons, decide to “play” and offer health insurance to employees must set the amount of benefits they wish to offer to their unionized employees. Employers must meet the minimum value threshold to avoid ACA penalties, but they must also remain below the cost threshold to avoid the Cadillac tax being triggered in the future.