|
All Employers Must Notify Employees of Marketplace Before October 1, 2013
Under the Patient Protection and Affordable Care Act (PPACA) a provision was implemented that requires employers to notify employees about the federal health insurance Marketplace (formerly called an "Exchange"). The Department of Labor has released information stating that employers need to notify their employees about the Marketplace by October 1, 2013.
ALL employers subject to the Fair Labor Standards Act are required to provide a notice to ALL employees about the existence of the federal Marketplace. The notice must be provided in writing and inform employees of coverage options, contact information and a description of services provided by the new Marketplace.
In addition, the notice must:
- Inform the employee that they may be eligible for a premium tax credit if the employee purchases a qualified health plan through the Marketplace.
- Include a statement informing the employee that, if the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer.
- Clarify that all or a portion of such contribution may be excludable from income for Federal income tax purposes.
New & Current Employee Notifications
Employers are required to provide notice to each new employee at the time of hiring beginning October 1, 2013. For 2013 and 2014, the notice requirement will have been met if it is provided within 14 days of an employee's start date. Current employees who are on the payroll on or before September 30, 2013, must receive the Marketplace notice by October 1, 2013.
Accepted Methods of Notification
The notice can be provided in writing in a manner calculated to be understood by the average employee, which allows for the notice to be delivered by first-class mail. Additionally, the notice can be provided electronically if the requirements of the Department of Labor's electronic disclosure safe harbor are met.
The Department of Labor has provided model notices which will satisfy the requirement of the Patient Protection and Affordable Care Act. The model notices include an example for employers who offer plans and another model for employers who do not offer a health plan.
Need Assistance?
For sample forms, please visit our Health Care Reform website and click on Tools.
For additional information about Health Care Reform, please visit our YouTube channel.
If you would like to connect with one of our Health Care Reform specialists, please call 855.220.8634, or e-mail us at healthcarereform@eidebailly.com.
| 
