Government Releases Guidance on Employee Notification About the Implementation of Health Insurance Marketplace in 2014

Posted by & filed under Legislation and Regulation Affecting Investments.

The Department of Labor and the Employee Benefit Security Administration (EBSA) Have Released Guidance on the Required Employee Notification About the Creation of a Health Insurance Marketplace. These Notifications Carry the Requirement to Notify Employees of:

The Existence of the Marketplace Also Known as the Exchange

A Description of the Services Provided by the Marketplace

How Employees May Contact the Marketplace to Request Assistance

Minimum Value of Coverage Requirements

The Provision of Premium Credits for the Purchase of Health Insurance From the Exchange

That the Purchase of Health Care Coverage Through the Exchange May Involve the Loss of Employer Paid Premiums and the Associated Tax Benefit Employer Contributions Offer

“The Affordable Care Act creates a new Fair Labor Standards Act (FLSA) section 18B requiring a notice to employees of coverage options available through the Marketplace. “

“The FLSA section 18B requirement to provide a notice to employees of coverage options applies to employers to which the FLSA applies. In general, the FLSA applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most firms, a test of not less than $500,000 in annual dollar volume of business applies. The FLSA also specifically covers the following entities: hospitals; institutions primarily engaged in the care of the sick, the aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state and local government agencies.”

Delivery of the Notice is Required by October 1, 2013

The Guidance also Provides an Updated Model Election Notice Under COBRA.

You can read the full details of this release at http://www.dol.gov/ebsa/newsroom/tr13-02.html

 

Additionally, A Model Notice has Been Created for Employers to Deliver to Their Employees. This Model Notice Informs Employees that if the Cost of Their Employer’s Plan Exceeds 9.5% of Household Income for the Year or Certain Coverage Requirements are Not Met that the Employee May be Eligible for a Tax Credit That Lowers their Monthly Premium.

The Government has Also Prescribed Penalties for Companies Whose Employees Opt Out of Their Employer’s Health Insurance and Purchase Health Insurance from the Marketplace Because of Minimum Value of Coverage Requirements.

You Can Read the Model Notice at http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf