Health Insurance Marketplace Notices

The Affordable Care Act states that an employer must provide a written notice regarding the Health Insurance Marketplace to each existing employee and new hires. 

Employers Subject to the Notice Requirement

Most employers will be subject to this requirement as it applies to employers covered by the Fair Labor Standards Act (FLSA).  In general, the FLSA applies to employers that have

1)      one or more employees who are engaged in commerce and

2)      gross annual sales of $500,000 or more 

Providing Notice to Employees

Employers must provide a notice of coverage options to each employee, regardless of plan enrollment status or of part-time or full-time status. 

Content of the Notice

The notice should have the following information:

1)      Inform the employee about the Health Insurance Marketplace (Exchange), including a description of the services and contact information.

2)      Inform the employee that they may be eligible for a premium tax credit and further describes the qualifications.

3)      Inform the employee that if they purchase a qualified health plan through the Exchange, they may lose the employer contribution (if any) to any health plans offered by the employer, and that all or portion of such contribution may be excludable from income for federal income tax purposes.

The Department of Labor has provided a model notice for employers who offer a health insurance plan to some or all employees, as well as a model notice for employers who do not offer a health plan.  The model notices can be found at http://www.dol.gov/ebsa/healthreform 

Timing and Delivery of the Notice

The notices have to be given to existing employees no later than October 1, 2013.

Starting as of October 1, 2013, the notices have to be given to new employees on the day they are hired. 

 

Call us at (219) 769-3616 with your questions, or email them to dvanprooyen@swartz-retson.com