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Employer Mandate - Monthly Measurement Method


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Employer X offers its employees group medical coverage. For purposes of the employer mandate, it has elected the monthly measurement method. Let's say an employee has satisfied the waiting period and is eligible for coverage as of July 1, 2016. Because the employee is actively working during July, and it cannot accurately predict whether the employee would be credited with at least 120 hours of service in July, does the employee get coverage regardless of whether the employee is credited with the minimum number of hours in July? In that case, would the employee then lose coverage for August? Or, does the employer provide the employee with provisional coverage during July and if s/he fails to be credited with at least 120 hours of service during July, does the employer then slip the July 2016 medical coverage rug out from under the employee at the end of July? What if the employee has incurred claims in the month of July?

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