Has anyone discovered any guidance on how the DOL's Wage Determinations will be affected by the Affordable Care Act?
It would seem that, since employer contributions toward group health care premiums would become mandated under ACA, those contributions would no longer be eligible to count toward the H&W component of fringe benefit minimums.
If the DOL issues guidance -- and maybe, even if it doesn't, e.g., if this is simply a matter of law -- that, effective Jan. 1, 2014, employer contributions toward healthcare plans may not be considered part of the H&W component of WDs, it seems like contractors get slammed twice. On the one hand, the ACA will require many contractors to increase their costs for employer-sponsored healthcare benefits, and on the other hand, any benefits they provide will now be excluded from the H&W contribution calculation, such that employers now will have to pay more toward other fringe benefits.
If this is the case, would the employer contributions to healthcare plans be considered as part of the base labor WDs? So if the WD base labor minimum is, say, $25, and the employer contributes $5 to a healthcare plan, could contractors pay out only $20?
Also, if anyone has heard anything from any federal agencies about whether they will agree to modifications or other adjustments for federally mandated increases in benefit payouts to contract employees under the ACA (under, e.g., FFP contracts), your input would be greatly appreciated. Without some kind of assurance from the federal agencies, or a specific contract provision for increased costs caused by changes in the law, I think the 52.222-43 price adjustments will be a total mess, since the DOL WD data is always a year behind, if not more, considering WDs don't get incorporated until the next renewal period.
I'm wondering how many contractors will feel the need to escalate wages in spite of the intent of -43 simply because revisions to DOL WDs may not be timely or sufficiently large enough to cover costs of ACA compliance.
Thanks!