By Melanie Yingst
TROY— Troy City Schools’ human resource director Marion Stout shared how the national Affordable Care Act will affect the district in the future at Monday’s regular board of education meeting.
Board member Dave Heffner was not in attendance.
Stout provided the board a timeline of all the changes the district must comply with under the Affordable Care Act.
“We’re going to start paying fees starting next year,” Stout said Monday.
For 2014, Stout said the district notified each employee about the market place exchange offered this fall. Stout also said the district’s health insurance broker McGohan Brabender provided employees a video to inform them how the district’s plans meets coverage levels and is deemed “affordable.”
The district provides dependent coverage up to Ohio’s standards of 28 years of age. The district now prints the value of its health benefits on the W-2 form and provides a summary of benefits and coverage. The district also complied with the flexible spending account limited $2,500.
In 2014, fees such as the “Patient-Centered Outcomes Research Institute” fee due July 31, 2014 will cost the district $1 per covered life or $1,000. The ACA also requires the district to pay a reinsurance fee due in Nov. 2014 and two years after for $63 per covered life, or $63,000.
In 2015, the district must offer health care coverage to all employees who work more than 30 hours per week or pay a penalty. This requirement was delayed one year. Stout said plans to begin documenting classified positions such as bus drivers who may incur hour in the fall for field trips, but not as many hours in the spring,will begin documenting the hours for coverage to be provided.
The largest fee the district may incur would be the ACA’s “Cadillac Tax” or a 40 percent penalty on plans that offer high value coverage. As the terms of the ACA stand today, the district was provided a formula from its broker McGohan Brabender that showed the Troy City School district would pay $1 million for the Cadillac Tax for its health care coverage it offers.
Stout said the district would be “more aggressive” to make sure everyone understands their plan. Stout also said 2014 is a negotiation year for both unions. Stout said information would be provided for discussion with the district’s health insurance committee.
Vice-president Stephen Lucas noted that the health care costs were in “expenses we didn’t have in the past.”
President Doug Trostle thanked Stout for the update and keeping the board informed of the changes related to the ACA.
The board recognized William Lutz for his two years of served on the board of education. Lutz said serving on the board of education was “a wonderful experience and opportunity.”
“I have a new found appreciation for elected officials,” Lutz said. Ginny Beamish was a write-in candidate for the open seat on the board and will begin her service Jan. 1, 2014.
The board appointed Trostle as president pro-tem for the re-organization meeting at 5:30 p.m. Monday, Jan. 13, 2014.