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Healthcare Reform Update




September 2012                                                                 Issue # 2012-8


Please take note of this important PPACA Advisor Update presented by Commonwealth Benefits Group. 
The PPACA Advisor resources will give you brief, to-the-point explanations about the law and how it directly affects you. This information -- compiled by benefit law experts and tailored for employers -- can help you meet your immediate compliance duties and better plan for the future.

Gordon M. Graffius, CLU                          Bradley W. Graffius, CLU, RHU
CEO                                                            President

PPACA Advisor  



As of March 1, 2013, employers must give a notice about the upcoming health exchanges to all existing employees and new hires. It is not yet clear whether employers who are not subject to the Fair Labor Standards Act (because they only operate in one state and have sales below $500,000) must give the notice.

So far, there is no information about the requirements of the notice, beyond what is in the PPACA itself. It is very possible that the government will issue a model notice.   It is also possible this notice requirement will be delayed. What we do know is that the notice will need to include:

  • A statement about the existence of the exchanges
  • A description of the services provided by the exchange
  • Contact information to request assistance from the exchange
  • If the plan provided by the employer has less than a 60 percent actuarial value, that the employee may be eligible for a premium tax credit and/or a cost-sharing reduction if he or she purchases a qualified plan through the exchange
  • A statement that if the employee purchases coverage through the exchange, the employee may lose his or her employer contribution toward health benefits, and that the employer contribution may be tax-free 

Action Steps

  • Watch for updates about this requirement
    • The effective date may be delayed if work to implement the exchanges is behind schedule
    • A model notice may be issued
  • Verify that you can easily determine which states that employees are living in, as the notice may need to contain state-specific information


This information is general and is provided for educational purposes only. It reflects UBA's understanding of the available guidance as of the date shown and is subject to change. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors. 09/14/2012

About Our Office 
Commonwealth Benefits Group
2 Barlo Circle, Suite C
Dillsburg, Pennsylvania 17019
O:  717.432.1010
F:  717.432.2334

This notification is brought to you by your Member Firm of United Benefit Advisors - an alliance of more than140 premier independent benefit advisory firms and one of the nation's five largest employee benefits advisory organizations.