Carolina Benefits

Employer Model Notices and the Affordable Care Act

Notice to Inform Employees of Coverage Options

Date: 08/22/2013

Employer News: The Affordable Care Act
Notice to Inform Employees of Coverage Options

This year, employers will be required to distribute notices to their employees of health coverage options available through the Marketplace.  This portion of the Affordable Care Act (ACA) was initially proposed to take effect on March 1, 2013, but this was changed and temporary guidance has been issued.

When am I required to distribute this notice to my employees?

The temporary guidance indicates that applicable employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. For 2014, the Department of Labor (DOL) will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date. With respect to employees who are current employees before October 1, 2013, employers are required to provide the notice not later than October 1, 2013.

What does the notice need to include?

This notice to current employees and to new hires will be required to include the following information:

  • the existence of the health insurance Exchange
  • the potential for the employee to lose the employer’s contribution if coverage is purchased through the Exchange; and
  • whether the employer’s plan meets the ACA’s minimum value requirements

Who will send this information out to my group?

It is the employer’s responsibility to get the notices out to their employees.  We have a simplified version of the notice available for our groups created by our Benefits Attorney.  Please contact us and we will provide you a copy.