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Affordable Care Act Update: Employer Exchange Notice & Deadline
Earlier this month, the Employee Benefits Security Administration issued a technical release which provides guidance and a solid deadline for employers required to provide exchange notices to their employees. Under that guidance:
• Notices must be provided by any employer that has one or more employees and has at least $500,000 in annual dollar volume. Also specifically required to provide notices are:
- Hospitals
- Institutions providing residential care for the sick, aged, mentally ill or disabled
- Schools for disabled or gifted children
- Preschools, elementary and secondary schools
- Institutions of higher education
- Federal, state and local government agencies
• Employers must provide a notice to all employees, whether or not they are enrolled in the plan (including full-time, part-time or any other employment status). Separate notices to dependents are not required.
• Notices must be issued to all employees no later than October 1, 2013, and to all new hires within 14 days of their date of hire, starting on October 1, 2013.
• Notices must include information about the existence of the exchange, contact information for the exchange and a description of the services provided by the exchange. In addition, notices must inform employees that they may be eligible for premium tax credits on the exchange, and that if the employee purchases health coverage on the exchange, the employee may lose the employer contribution to any health benefits plan offered by the employer.
• Notices may be delivered by first class mail or electronically, if the electronic notice meets certain safe harbor requirements.
• EBSA developed model notices for use by employers. Notices can be found at: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf and http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf.
EBSA developed model notices for use by employers. Notices can be found at: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf and http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf.
Bernstein Shur’s Affordable Care Act Team helps employers cost-effectively manage the Affordable Care Act rollout. We provide a high-value, flat-fee review of your organization’s ACA cost and compliance strategy. Also available on a flat-fee basis: full compliance audits, half-day and full-day workshops. For more information, please contact Steve Gerlach in Portland at 207 228-7128, sgerlach@bernsteinshur.com, or Karen Aframe in Manchester at 603 623-8700, kaframe@bernsteinshur.com.