An employer must comply with TEFRA regulations once they reach the 20 or more employees threshold. The “20 or more employees” threshold is met when an employer has 20 or more full-time and/or part-time employees for each working day in each of 20 or more calendar weeks in the current calendar year or the preceding calendar year. The 20 calendar weeks do not have to be consecutive. The requirements are based on the number of employees, not the number of individuals covered under the medical plan.What are the Requirements for TEFRA?
• Requires 20 or more full-time and part-time employees
• Must cover full-time employees age 65+ on employer sponsored group plan
What is the definition of a Non-TEFRA Group?
“An employer group with less than 20 full-time and part-time employees combined.”
How does Seniors Choice benefit a Non-TEFRA Group?
If an employer has an actively at work 65+ employee currently eligible for the small group plan that is being offered, Seniors Choice can be a tremendous savings. By taking this 65+ employee off the small group plan and putting them on Seniors Choice creates the following solutions:
•Lowers the average age of the group
•Lowers the premium for that senior employee
•Lowers the overall premium for the employer
•Provides favorable renewals for the group as a whole
•Provides complete savings for employer
For more information about TEFRA, click HERE