Interns and Offers of Coverage

Summer is finally here and many employers have recently onboarded a new group of student interns. Those interns are typically hired to work full-time hours, but for most, the expected period of employment is very limited. Eligibility for group health plan coverage will be determined by the applicable plan documents, but applicable large employers (ALEs) should consider the Affordable Care Act’s (ACA) rules into account when trying to avoid potential penalties. This Q&A offers a discussion of those rules as well as options for handling intern coverage offers and related consequences for each of those options.