The Affordable Care Act requires employers to notify their employees of the existence of health benefits exchanges. The act required the notification be issued on or before March 1, 2013. Information released yesterday postponed the requirement until late summer or fall 2013. The goal is to coincide with the open enrollment on the Exchanges which begins October 1, 2013 with a January 1, 2014 effective date.
The government provided two reasons for the delay:
- To coordinate with educational efforts and guidance on minimum value (the rule that employer-sponsored coverage must be affordable and cover at least 60% of services), and
- To provide employers with sufficient time to comply.
The written notification requirements informing employees about the existence of the Exchanges includes:
- A description of the services provided by the Exchanges and how they may get assistance.
- The availability of premium tax credit if their employer’s plan doesn’t cover 60% of the employee purchases coverage through the Exchanges.
- The employee may lose the employer contribution toward the cost of health benefits if the employee purchases coverage through the Exchanges.
It is possible that the Department of Labor would provide a model with generic language to be used to satisfy the requirement.
We will continue to keep you updated on this requirement as more information becomes available. If you have any questions please do not hesitate to contact your dedicated AFG Account Manager.
