The Affordable Care Act requires employers who are subject to the Fair Labor Standards Act to notify current employees about coverage options available through state and federal exchanges by October 1, 2013. Employers must notify all employees, regardless of plan enrollment status (if applicable) or whether they are part-time or full-time.
Employers are not required to notify employees' dependents or others who are eligible for coverage but are not employees. New employees hired on or after October 1, 2013, must receive notification of coverage options within 14 days of their start dates.
Employers can use a notification template:
The U.S. Department of Labor (DOL) has created a model notice which your clients can use to notify their employees. However, they do not have to use the DOL's model notice. Your clients may choose to wait until final guidance is issued later this year. If they use the model notice now, they will not be required to send additional notifications when the DOL releases more information.
It is your clients' responsibility to comply with the employer notification requirement. We encourage employers to consult their own legal counsel when considering whether to use the model notices provided.
Updated COBRA notice:
The DOL also released an updated model COBRA election notice. The new template includes additional information about health coverage options offered through the exchanges.
The DOL has made FAQs available to answer questions about the employer notification requirement. We also encourage you to visit our corporate website at www.coventryhealthcare.com to stay abreast of changes resulting from health care reform.
