Almost Time to Send Out Notices of Coverage Options Under the Affordable Care Act

September, 2013


October 1 is just around the corner, and beginning on that date, most employers will be required to provide written notice of coverage options under the Affordable Care Act (ACA) to all their employees. The notice requirement applies to all employers who are subject to the Fair Labor Standards Act (employers with one or more employees and $500,000 or more annual dollar volume of business.)

The notices are required to be provided to all existing employees on October 1 and all new hires after that date. The notice must be provided to new hires "at the time of hire," which has been defined as within 14 days of the employee's start date.

Notices must inform employees of the following: (1) the existence of the health insurance marketplace, a description of its services, and information on how to contact the marketplace; (2) that the employee may be eligible for a tax credit by purchasing insurance through the online marketplace if the employer does not offer coverage or if the employer's coverage is not adequate and affordable; and (3) if the employee purchases coverage through the exchange, the employee may lose the employer's contribution to coverage, which is excludable from income for federal tax purposes.

Confused about how to write up a notice or don't have time? Don't fret! The Department of Labor (DOL) has created two model notices, one for employers who provide coverage and one for employers who do not. Both can be found on the DOL's website.

Do you want to ask more specific questions about how Healthcare Reform changes will impact your organization? Contact Cascade to get answers.

 

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