Department of Labor Delays Affordable Care Act Notification Requirement
The Department of Labor (DOL) has released new guidance concerning employers and their immediate responsibilities under the health care reform laws. There is a provision of the Affordable Care Act (ACA) requiring all employers to provide employees with a notice about the availability of the new health insurance exchanges by March 1, 2013. The DOL has now confirmed that employers will not be held to this March 1st deadline. They have yet to issue a model notice, FAQs or guidance about the employer notice requirement. The Department acknowledged that it would be premature to issue a notice in March because specific exchange information is not yet available.
As a result, the upcoming guidance on the provision is expected to reflect a more realistic compliance date.
Once the revised date is announced, employers will need to comply with the above provision. Below is an overview of the employer notice requirements.
All employers must notify employees:
- Of the existence of the Health Insurance Exchange that will become operative as of January 1, 2014;
- Of the employee’s potential eligibility for federal financial assistance if the employer’s health plan doesn’t meet affordability and minimum value criteria under ACA and if employee household income is below certain thresholds; and
- That they may lose the employer’s contribution to health coverage if they purchase health insurance through the Health Insurance Exchange.
Additional parameters of the notice are that it must:
- Be written;
- Be provided regardless of the size of the employer; and
- Include minimal information about the individual so as not to place a threat to individual privacy.
We will share the DOL’s updated guidance as soon as it is issued. In the meantime, please mark your calendars for the following event:
The Beacon Group is co-hosting a seminar on February 28th at 3pm at the Crown Plaza Hotel in King of Prussia. Our co-host will be represented by an experienced ERISA attorney with deep expertise regarding an employer’s responsibilities under The Patient Protection and Affordable Care Act. The seminar is geared toward decision-makers at companies with 50+ employees. Seating will be limited to the first 100 registrants; invitations will be emailed within the next couple of weeks.
Please contact Brian Hart at email@example.com to request an invitation or additional information about our upcoming seminar.