Health Care Exchange Notification Due to Employees October 1, 2013*
*New update: the Department of Labor decided, on Sept. 17th, that it will no longer impose the $100 penalty if you fail to notify your employees; however, we still recommend you share this information with your employees so that they are well informed. The October 1st deadline is no longer critical but is recommended or as soon as possible thereafter.*
The Affordable Care Act requires employers subject to the Fair Labor Standards Act (FLSA) to notify employees and new-hires of their coverage options under the new Health Insurance Marketplaces (“Marketplace”) (aka Health Care Exchanges) opening January 1, 2014.
If you have revenue greater than $500,000 and have one or more employees, you must comply with a new Department of Labor requirement. You must send a Notice to Employees of Health Insurance Marketplace Coverage Options. The effective date of this notice is October 1, 2013*.
The Exchange Notice must inform employees of coverage options and must include information regarding the existence of the new Marketplace (Health Care Exchanges) as well as contact information and description of the services provided by the new Marketplace. The notice must also inform the employee that the employee may be eligible for a premium tax credit if the employee purchases through the Marketplace and that the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer if the employee purchases a qualified plan through the Marketplace.
This required notice must be provided NO LATER THAN OCTOBER 1, 2013*. The notice must be distributed in writing and may be provided electronically.
The Department of Labor (DOL) has given two options for the required notice:
1. The first model notice is to be used when the employer currently DOES provide a group health insurance plan. This notice can be found at: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf. Note: IF YOU PROVIDE A GROUP HEALTH INSURANCE PLAN, CONTACT YOUR INSURANCE PROVIDER, THEY MAY PREPARE THIS NOTICE FOR YOU.
2. The second model notice is to be used when the employer currently DOES NOT provide a group health insurance plan.
Part A is general information, Part B you will need to fill in your Employer information. After adding all the employer information please save parts A & B to your computer. You can then distribute the notice to your employees by printing paper copies or providing email notification.
If you have any questions please contact your accountant. We will be happy to answer your questions if possible, or find out more information if needed.
Edwards & Associates, PC