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Hi, this is Connie Chiara with Corporate Benefit Partners. The Employee Benefits business is filled with acronyms. Let’s talk for a minute about healthcare reform and what it means to be an ALE. There are two provisions of the Affordable Care Act that apply only to Applicable Large Employers, or ALEs.

The first provision is that an employer has shared responsibility and must provide minimum essential health insurance coverage at an affordable price to their employees. Secondly, ALEs must file form 6056 and in some cases 6055 each year with the IRS certifying that they offer such coverage. Whether an employer is an ALE is determined each year and generally depends on the average side of an employer’s workforce.

If an employer has at least 50 full-time employees, including full-time equivalent employees during the prior year, that employer is considered to be an ALE for the current year. Do you have any questions about healthcare reform? Call me. Let’s talk benefits.