Page 46 - Summer 2014

is very welcome news. work during the winter ski season, for Consider this hypothetical example, as a patroller or instructor, Even with measurement periods, a for a returning seasonal employee. but then may be laid off temporarily number of businesses are considering John Smith is a lift attendant at in April and May, and return to work options under the ACA to incentivize Big Mountain Ski Area, which is for the summer season in June. While seasonal employees to return, year after clearly a large employer under the reducing the break-in-service regula- year, through limited insurance plans. ACA. Smith is hired on November tion from 26 weeks to 13 weeks may As more regulatory guidance becomes 1, 2014, and the ski area informs have been an IRS attempt to address available, plan providers are pioneer- him during orientation that it uti- this concern, 13 weeks is still longer ing affordable plan options for seasonal lizes a 12-month measurement period than most shoulder seasons to accom- employers. for all seasonal employees, which modate these dual seasonal employees. One of the most compelling extends until October 31, 2015. Big At this point, without specific reg- options recently introduced is called a Mountain closes for the season on ulations addressing this unique issue, “gap” or “bridge” plan. These limited May 15, 2015, and Smith is laid off there are only limited options for ski health plans (also referred to as “work- on that date. (He does not average areas and their dual seasonal employ- site benefit” plans) allow businesses 30 hours of work per week during ees. One option is to make dual sea- to provide a limited degree of health Big Mountain’s 12-month measure- sonal employees eligible for health coverage for their otherwise ineligible ment period.) On October 1, 2015, insurance, as if they were a traditional, (i.e., not full-time) seasonal employees. Smith re-applies for another season year-round employee. That’s a poten- These gap plans are meant to supple- as a lift attendant at Big Mountain. tially costly option, but it would be ment the employee’s underlying health Because his break in service from serve as an expression of value and insurance that he or she would have working at the area was longer than worth from the company to those dual obtained on the exchange, or through 13 weeks, Big Mountain can treat seasonal employees. coverage on a spouse’s or parents’ plan. him as a “new” seasonal employee— The other option is to strictly “While these plans are not required and start an entirely new 12-month monitor the hours employees work under the ACA, these employer-paid measurement period—even though during the two periods of the ski area’s worksite plans can serve as an affordable he is returning for his second sea- seasonal employment. Under this incentive or benefit for your seasonal son with the resort. Smith thus approach, the employer would track a employees, who may not be eligi- remains eligible to obtain gener- dual seasonal employee’s hours to make ble for full health coverage,” explained ous subsidies (based on his house- sure the individual does not go above Michelle May, a senior account exec- hold income) from the government the 1,560-hour threshold within a utive for Denman Employee Benefits to purchase health insurance through 12-month measurement period, which Specialists based in Denver, Colorado, the exchanges. would trigger full-time status, and thus who works with a number of ski areas Absent a change in these regu- eligibility for health insurance benefits in the West. “These plans could distin- lations, as long as there is a 13-week under the ACA’s employer mandate. guish an employer from others when break in employment, an employer can There is only a slight administra- competing for highly sought after sea- keep utilizing new measurement peri- tive burden with this “monitor hours” sonal labor, especially in small, rural ods for its returning seasonal workforce. approach, given the small number of markets where labor is tight.” dual seasonals at issue. Furthermore, Here’s how the concept would for dual seasonals, by closely moni- work. Most ski areas provide health toring their total hours of work dur- insurance coverage for their year-round Despite this good news on “breaks ing a 12-month measurement period, employees: general managers, lift in service,” other questions remain they would still be eligible for gener- maintenance, HR directors, market- unanswered. There is still little spe- ous subsidies from the government to ing, accountants, and so on. But many cific guidance on how ski areas should purchase health insurance through the ski areas have also rewarded long-serv- treat “dual seasonal” employees. For exchanges. In short, this would be a ing seasonal employees for their loyalty ski areas with four-season operations, creative solution that benefits both the and longevity. For example, after five dual seasonals are those employees who employee and the employer. or ten years of service with the resort, G 44 | NSAA Journal | SUMMER 2014 w w w.nsaa. org NSAA Summer 2014 prepressed v6a.indd 44 7/3/14 4:21 PM