Newly Eligible Ongoing Employee - Treatment under Employer Mandate

[rocknrolls2]

Employer X maintains group health plans for its employees. For 2015, it chose to offer affordable coverage providing minimum value to 70% of its otherwise eligible full-time employees, choosing reasonable classifications to exclude as part of the 30%. X applies the look-back measurement method for purposes of determining the amount of any penalties under Code Section 4980H. For 2016, X is extending coverage to the other 30% due to its awareness that the rule requires it to offer coverage to 95% of its otherwise full-time employees. For purposes of applying 4980H to 2016, would the newly eligible ongoing full-time employees, how would Employer X treat them? Are they treated as newly eligible full-time employees, even though they are in fact ongoing employees? Or would it not be able to do anything but treat them as ongoing full-time employees since 4980H is applied on an ALEM by ALEM basis?

I would be most interested in getting your thoughts on this. Thank you.

[Flyboyjohn]

I don't see any basis for treating them as "newly eligible" for 4980H purposes