March 1 Deadline Extended for Affordable Care Act Exchange Notice
Posted on February 5, 2013
The Department of Labor (DOL) recently announced that it is postponing the March 1 deadline for employers to provide written notice to employees regarding state health care Exchanges. Employers will not be expected to comply until final regulations are issued and a final effective date is released. The DOL expects that the date will be set for the late summer or fall of 2013, which will coordinate with the open enrollment period for Exchanges.
The Affordable Care Act (ACA) requires employers to provide all new hires and current employees with a written notice about ACA’s health insurance Exchanges that:
* Informs them of the existence of state health care Exchanges
* Explains what services will be provided
* Explains how the employee may contact the Exchanges to request assistance
* Details how employees may be eligible for a premium tax credit or cost-sharing reduction if the employer’s plan does not meet certain requirements
* Explains that the employee may lose employer contributions for health care benefits if he/she enrolls in the Exchange, that all or some portion of such a contribution may be excludable from income for Federal income tax purposes
The DOL also stated that it is considering providing a model form with generic language that could be used to satisfy the notice requirements.
If you have further questions about the implications of the ACA, please visit the DOL website or consult with your HR or benefits professional.