Excluding Certain Veterans From The ALE Determination
Excluding Certain Veterans From The ALE DeterminationNovember 2, 2015
Catrina Reyes, J.D., M.P.A., Policy Analyst and Compliance Manager
The Surface Transportation and Veterans Health Care Choice Improvement Act, signed into law by the President on July 31, 2015, allows employers to exclude certain veterans from the employee count when determining whether an employer is an Applicable Large Employer (ALE) subject to the Large Employer Mandate. Specifically, employers can exclude for any month, veterans that have medical coverage provided by any of the uniformed services (including TRICARE) or under certain Veterans’ Affairs (VA) health care programs. An ALE is an employer that employed an average of at least 50 full-time (FT) and full-time equivalent (FTE) employees in the prior calendar year. The effective date of this exclusion is January 1, 2014, which means it can retroactively be applied.
The exclusion is intended to encourage employers, especially smaller employers near the ALE threshold, to hire more veterans by giving them some relief from the Large Employer Mandate. The Large Employer Mandate requires ALEs to offer Minimum Essential Coverage, that is Minimum Value and affordable, to substantially all of its FT employees and their dependents (does not include spouses) or otherwise be assessed a penalty.
To learn more about the Large Employer Mandate, download Claremont’s essential ‘Play or Pay’ guides.