Skip to Main Content

July 31, 2026

Compliance Q&A: Look-Back Measurement Method—Reduction of Hours

For applicable large employers (ALEs), tracking employee eligibility for group health under the ACA can be complicated, particularly when there has been an employee status change or reduction in work hours. Balancing health plan eligibility terms and carrier restrictions while minimizing the risk of ACA penalties can be a challenge. This Q&A provides a discussion of the applicable rules and provides guidance for plan administration best practices.