NOTICE OF COVERAGE TO BE DISTRIBUTED TO EMPLOYEES BY OCTOBER 1, 2013
Under the Affordable Care Act (Health Care Reform) ALL businesses must notify their employees by October 1, 2013 with a “Health Insurance Marketplace or Exchange Notice”. This notice details to the employee whether the employer will be offering employee benefits, or be sending the employee to the exchange to shop for health insurance.
All employers, regardless of the number of employees, are required to provide their employees with this notice.
The notice requirement applies to all employers that are subject to the Fair Labor Standards ACT (FLSA). Most employers fall into this category, but there are exceptions. The following link may assist employers in making this determination:
Recipient and Distribution Requirements:
This one-time notice must be provided to all current employees as of October 1, 2013 and to new employees as they are hired. Employers must provide a notice to all full-time and part-time employees, regardless of whether the employee is enrolled in an employer-sponsored medical plan. Employers must provide this notice even if they do not offer any health coverage to employees.
The notice does not have to be provided to employees’ dependents. Notices must be in writing and can be delivered electronically by the employer.
What Must Be Included in the Notice:
There are two versions of the model notice:
- Notice for employers that DO offer medical coverage to some, or all, of their employees
- Notice for employers that DO NOT offer medical coverage to any employees
Employers can use the model notices or create their own notice as long as the notice includes the following required information:
- Verbiage that the Exchange or Marketplace exists including a description of the services it provides and direction for employees to visit HealthCare.gov for more information
- Employees who purchase coverage through the Exchange or Marketplace may be eligible for a premium subsidy if their employer does not provide coverage that is “affordable” and provides “minimum value”. Coverage is affordable if the employee-only option for the lowest-cost plan offered costs less than 9.5% of an employee’s W-2 wages. Coverage provides minimum value if the plans pays at least 60% of allowed charges for covered services.
- Employess who purchase coverage through the Exchange or Marketplace will pay for thatcoverage with after-tax dollars
- If applicable, information about the medical coverage the employer offers to its employees
You can click on the following links for sample model notices: