Government delays employer requirement to notify employees of the Exchange
Update: June 11, 2013 - Department of Labor releases update on employer notice to employees about the Marketplace
Jan. 29, 2013
The federal government confirmed in an FAQ issued on January 24, 2013 that it is delaying the requirement for employers to notify their employees of the availability of the Exchange.
The Affordable Care Act (ACA) requires employers subject to the Fair Labor Standards Act to notify their employees of the availability of the Exchange. Section 1512 of the Act states such notice must be provided beginning March 1, 2013, for any new hires, and no later than March 1, 2013. for existing employees. The employer must also provide information regarding potential Exchange tax credits if an employer’s offer of coverage does not meet minimum value standards and the loss of the employer contribution if the employee purchases coverage through the Exchange.
The Department of Labor (DOL) expects the new timing for employer notification will be late summer or fall of 2013, to coordinate with the open enrollment period for Exchanges.
Finally, the FAQ indicates that DOL is considering providing a template or generic language that employers can use to satisfy this requirement.
What is BCBSM doing?
This guidance delays the application of the requirement until further guidance is issued, and will impact both BCBSM as an Employer as well as our employer groups. Blue Cross Blue Shield of Michigan will continue to monitor and provide updates as they become available.
Where can I find more information?
Click here for more information posted on the Department of Labor website.
The information in this document is based on preliminary review of the national health care reform legislation and is not intended to impart legal advice. The federal government continues to issue guidance on how the provisions of national health reform should be interpreted and applied. The impact of these reforms on individual situations may vary. This overview is intended as an educational tool only and does not replace a more rigorous review of the law’s applicability to individual circumstances and attendant legal counsel and should not be relied upon as legal or compliance advice. As required by US Treasury Regulations, we also inform you that any tax information contained in this communication is not intended to be used and cannot be used by any taxpayer to avoid penalties under the Internal Revenue Code.