DOL Announced Companies Will Not Be Fined If They Don’t Notify Employees About Exchange

As a business owner, it is important to understand how the Affordable Care Act may affect your business. However, with so many misconceptions about about Health Care Reform works, this can be difficult.

A common myth is that business owners will be fined if they do not provide notification to their employees about the new Health Insurance Marketplace.

If your company is covered by the Fair Labor Standards Act (FLSA), you must provide a written notice to your employees about the Health Insurance Marketplace (aka Exchange) by October 1, 2013, however the Department of Labor has announced is no fine or penalty currently under the law for failing to provide this notice.

For more information on the Exchange notice, please contact our office or review a previous post on this topic.

Exchange Open Enrollment Notice Must Be Distributed by 10/1/13

Beginning January 1, 2014, all individuals and employees of small businesses will have access to purchase health coverage through the Health Insurance Marketplace (aka the Exchange or SHOP). Open enrollment for the Marketplace begins October 1, 2013.

Section 1512 of the Affordable Care Act requires all employers to provide the Exchange notice to all employees (regardless of full or part time status or plan enrollment status)  no later than October 1, 2013. The notice must also be supplied to all new hires within 14 days of their hire date. Employers are not required to provide a separate notice to dependents or other individuals who are or may become eligible for coverage under the plan if they are not employees.

The purpose of the notice is to:

1) inform employees of the existence of the Marketplace (aka Exchange) and how they can contact the Marketplace for assistance

2) inform employees if their current plans meets minimum value standards for the purpose of determining if they will be eligible for a premium tax subsidy in the Marketplace

3) inform employees if they purchase coverage through the Marketplace they will lose the employer contribution to any health plans offered by the employer.

This notice can be provided to employees via paper or electronically. If you decide to post is on your company intranet, you must distribute a notice to all employees directing them where the notice can be located.

Even if you do not currently provide health coverage to employees, you are still required to distribute the Marketplace notice explaining this.

Please contact our office if you need a copy of the English or Spanish versions of the Exchange notice.