Health Reform Resource Center
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Health reform is a ticking clock and no one really knows what time it is.
Translation? There is much to be done within a specific time frame, but it’s debatable
if it can all get done on time. One such requirement in question includes an
employer’s legal obligation to inform employees of a state’s health exchange.
that employers will notify employees of coverage available in a state’s
exchange. Although notification should begin effective March 1, 2013, several
sources have indicated that the Department of Labor will likely move the
deadline to a later date.
Employers will have to provide current employees and new hires with written
existence of an Exchange, including a description of its services, and how an
employee may contact the Exchange to request assistance;
- If the
employer plan's share of the total allowed costs of benefits provided under the
plan is less than 60 percent, that the employee may be eligible for a premium
tax credit under section 36B of title 26 and a cost sharing reduction under
section 18071 of title 42 if the employee purchases a qualified health plan
through the Exchange; and
- If the
employee purchases a qualified health plan through the Exchange and the
employer does not offer a free choice voucher, then the employee may lose the
employer contribution (if any) to any health benefits plan offered by the
employer and that all or a portion of such contribution may be excludable from
income for Federal income tax purposes.
Frequently Asked Questions
Which employers have to comply?
The requirement applies
to all employers subject to the Fair Labor Standards Act (FLSA). The FLSA is
defined as “any person acting directly or indirectly in the interest of an
employer in relation to the employee.”
When do employees need to be notified?
The ACA provisions
specify that current employees will need to be notified by March 1, 2013. New
employees need to be notified in writing at the time of hire.
Which employees need to be notified?
At this time, it is believed that all employees will need to be notified. The
FLSA defines an “employee” as an individual employed by an employer.
Is there a template or specific
guidelines employers need to follow?
The Department of Labor
has yet to release any specific guidance for employers. Industry sources
speculate that the DOL will not hold employers to the March 1, 2013 deadline.
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2010 US Code Title 29 - Labor Chapter 8 - Fair Labor Standards - Section 218b: Notice to Employees
Disclaimer: The information provided herein is for informational purposes only and should not be considered legal advice. Please contact a lawyer for legal guidance.