Controlled Groups and Affiliated Service Groups

The ACA imposes a penalty on "large" employers that either do not offer "minimum essential" (basic medical) coverage, or that offer coverage that is not affordable or it does not provide minimum value. To discourage employers from breaking into small entities to avoid the penalty, the ACA provides that, for purposes of the employee threshold, the controlled group and affiliated service group aggregation rules will apply to health plans. This ACA Advisor reviews the four types of controlled groups, three types of Affiliated Service Groups and other related aggregation rules.