ACA Communications Deadline Approaching Oct. 1

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By October 1, 2013 employers are required to provide their employees with a notice informing them of health insurance options that may be available through a public exchange, also known as the Health Insurance Marketplace. This notice is one of the many steps that employers will need to take to stay compliant with the Affordable Care Act.

The notice must include the following information:

  • The existence of state or federal health insurance exchanges.
  • If the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60%, then the employee may be eligible for a federal premium tax credit if the employee purchases a qualified health plan through an exchange.
  • If the employee purchases a qualified health plan through an exchange, then the employee may lose the employer contribution to any health benefits plan offered by the employer; also, all or a portion of such contribution may be excludable from income for federal income tax purposes.

While employers must provide a notice to each employee, regardless of plan enrollment status or part-time or full-time status, they don’t need to create the notice from scratch. The US Department of Labor published model notices, one for Employers Who Offer Health Plans and one for Employers That Do Not Offer Health Plans.

Every employer must provide the notice free of charge by first class mail or electronically. Going forward new employees must receive the notice 14 days prior to their start date.

For those that qualify for COBRA coverage, employers a must provide an election notice, which describes their rights to continuation coverage and how to make an election. This notice is being revised to help make them aware of other coverage options available in the Marketplace. Visit the DOL website for a model notice.

As always we are here to answer any questions you may have on your insurance benefits or health care reform please consult your PIP Account Representative at 414-277-0154, toll-free at 800-637-4676 or via email at info@insuranceformembers.net