Affordable Care Act

This page has information about the benefits provided to eligible City of Minneapolis employees under the Affordable Care Act (ACA).

What you need to know

Under the Affordable Care Act (ACA), employees who are not regular, full-time employees may be eligible to enroll in the City of Minneapolis medical plan. Medical insurance will be offered to:

• Employees who, at the time of hire, are reasonably expected to work 30 or more hours per week. Certain seasonal employees and employees who have coverage through a union plan are not eligible.
• Part-time and intermittent employees who average 30 or more hours of service per week during a defined 52-week measurement period.

If you are eligible, you will receive medical insurance information. If you enroll in the medical plan, you will also receive employer contributions to the HRA/VEBA.

Questions about ACA benefits:

When am I eligible for medical coverage?

• The first of the month following the first day of employment if, at the time of hire, you are reasonably expected to work 30 or more hours a week.
• The first of the month following a year of service, if you are a part-time or intermittent employee who averages 30 or more hours of service per week during the 52-week “initial measurement period” following your hire date.

How can I learn about the medical plan and associated costs?

Under the ACA, am I eligible for dental, life insurance or other benefits?

No. The ACA eligibility rules apply to medical insurance only. Generally, you must be a regular, full-time employee to be eligible for dental, life insurance and other City benefits.

What is the HRA/VEBA?

If you enroll in the medical plan, you will receive contributions to a health reimbursement arrangement (HRA/VEBA). You can use money in your HRA/VEBA account to pay for eligible medical, dental and vision expenses that aren’t paid by other insurance plans. You can also use HRA/VEBA funds to pay for eligible expenses for your qualified dependents.

How long will I be eligible for medical coverage?

• If you are eligible because, at the time of hire, you were reasonably expected to work 30 or more hours per week, you will remain eligible as long as your scheduled work hours remain at 30 hours or more.
• If you are eligible because you averaged 30 or more hours of service during the initial measurement period, you remain eligible for at least the next 12 months.
• To be eligible for the following calendar year, you must average 30 or more hours of service during the annual measurement period (from October to October).

What happens if I don’t have enough money in my paycheck to cover my medical contributions?

You will be billed for any missed contributions.

I have coverage through my spouse’s or parent’s plan. What do I need to do?

You are not required to change your current coverage or to enroll in the City of Minneapolis medical plan. If you have other coverage and wish to drop it to enroll in the City’s plan, you are advised to check with your current plan to determine the rules about ending that coverage.

A person may not be covered twice under the City of Minneapolis medical plan. If you are already covered as a dependent under the plan, you cannot enroll if you become eligible under the ACA rules.

What happens if my employment status changes during the year?

Most employees who transfer from full-time to part-time will remain eligible for medical coverage for the rest of the calendar year. Most part-time, intermittent, and seasonal employees who transfer to full-time will be eligible for medical insurance the first day of the month following the transfer date.

What happens if I am detailed to a 30+ hour per week job?

You will not be eligible immediately after you are detailed. You will be eligible for medical insurance only if you average 30 or more hours during the initial or annual measurement period.

Do I need to complete the wellness program to receive the lower wellness rate for 2025?

If you enroll in the medical plan on or before June 1, 2024, you must complete at least 3000 points in the wellness program by August 31, 2024, to have the lower rate in 2025. If you enroll after June 1, 2024, you will have the lower rate for the remainder of 2024 and 2025.