Employer Notification of Health Care Exchange Options Delayed

Implementation Deadline: DELAYED

Under Section 1512 of the Patient Protection and Affordable Care Act (PPACA), employers subject to the Fair Labor Standards Act (FLSA) are required to provide their employees with written notice of coverage options available through state health insurance Exchanges. This requirement, set for a March 1, 2013, implementation deadline, has been delayed pending review by the U.S. Department of Labor (DOL), which may expand the requirement’s provisions. Among other guidance, DOL is considering providing model, generic language or other templates that employers could use to satisfy the notice requirement.

 For Clarification on the Delay, Please See:

Department of Health and Human Services (HHS) Question & Answer document.

Anticipated Deadline

The Department of Health and Human Services does anticipate distribution of employer notices by late summer or fall of this year, just in time for Exchanges to go operational.

Important Notice Elements

The original Section 1512 notice mandated all employers subject to the FLSA to notify employees in writing regarding state health benefit Exchange options. This notice required the following information:

  • Exchange Overview – To include a description of the services provided by the Exchanges and the manner in which the employee may contact Exchanges to request assistance.
  • Premium Tax Credit Details – If the employer’s plan share of the total allowed costs of benefits provided under the plan is less than 60% of such costs, the employee may be eligible for a premium tax credit if that employee purchases a qualified health plan through an Exchange.
  • Potential Loss of Employer Contribution – If the employee purchases a qualified health plan through an Exchange, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer. Further, all or a portion of such contribution may be excludable from income for Federal income tax purposes.
* Source: www.Benefitmall.com

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Reeva Simon Rivkin, RHU, HIP, President, Rivkin Insurance Services; CA LicOB12353

Rivkin Insurance Services is a full service insurance agency specializing in Employee Benefits, Medicare Supplements, Medicare Advantage, Medicare Part D, Long Term Care Insurance, and Individual Health Care Insurance. We are here to help!

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* The views expressed do not necessarily reflect the official policy, position, or opinions of Rivkin Insurance Services. This update is provided for informational purposes. Consult with a licensed accountant or attorney regarding any legal / tax matters discussed herein.

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