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ACA---Exchanges

Many U.S. employers offer health insurance coverage to their employees and have been doing so long before the Affordable Care Act (ACA) was signed into law in March of 2010. However, these employers may still be impacted by ACA regulations including the requirement to notify employees of health insurance exchanges regardless of the quality of their own employer-sponsored health plans.

New guidance on exchange notifications required by the ACA has recently been issued by the Department of Labor (DOL) in Technical Release 2013-02.

Beginning October 1, 2013, employers subject to the Fair Labor Standards Act (FLSA) will be required to provide each employee a written notice informing them of their health coverage alternatives offered through the Health Insurance Marketplace, also known as the exchange. Employees must be notified within 14 days of the time of hiring, and current employees must be notified no later than October 1, 2013.

The DOL has provided model language for the notification on their website at http://www.dol.gov/ebsa/healthreform/. There is a model notice for employers who offer health insurance and a different model notice for those who do not offer health insurance coverage.

The Marketplace is designed to help employees find health insurance that meets their needs and fits their budget with one-stop shopping for finding and comparing private health insurance options. If their employer-sponsored coverage does not meet minimum requirements as set forth by the ACA, they may be eligible for a tax credit that would help them save money on their health insurance premiums through the Marketplace.

Employers who have employees who qualify for a tax credit to buy coverage through the Marketplace could be subject to penalties. Watch for our upcoming ACA blog post on “ACA Penalties: Insurance Inadequacies Can Cost You”  and signup for our webinar – Think Your Business is ACA Compliant? - to learn more.



Author Bio: Newman Wells is a writer, designer and entrepreneur with over 20 years of corporate marketing experience. Passionate about B2B marketing, Newman Wells specializes in helping businesses define their value propositions by simplifying technical jargon for easier-to-digest messages that drive sales. She has spent the last two decades building successful marketing departments from the ground up and has been Paycom's director of marketing since 2005.


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