October 1, 2013 is the deadline for employers to notify employees IN WRITING about the state or federal exchanges (also called the Marketplaces). This notice is part of the compliance with the Patient Protection and Affordable Care Act (PPACA). The notice must be provided to all employees (both full-time and part-time) under the Fair Labor Standards Act (FLSA), regardless if your company provides healthcare. In 2014, Americans will face a tax penalty if they do not obtain healthcare. The “Pay or Play” provision of the law that affects employers has been delayed until 2015. To comply with this federal law, organizations must do the following:
- Provide workers with one of two versions of a notice regarding health care exchanges developed by the U.S. Department of Labor.
- Starting October 1, 2013, the exchanges are scheduled to accept applications for coverage beginning January 1, 2014.
- Employers in multi-plan states will have an even more challenging time with this requirement.
- Individual plan value.
- This explains whether employees will receive at least 60 percent coverage of essential health benefits through employer-provided coverage, and whether employees may be eligible for a premium tax credit if they purchase a plan on the state exchange.
- Tax implications.
- Because health insurance premiums under employer-sponsored coverage may be paid with pre-tax dollars, buying coverage through a state exchange may change an employee’s tax obligations.
- Employees using an exchange to purchase coverage may lose their employer’s tax-free contribution (if any) to their health coverage, also.
Also bear in mind that Summaries of Benefit and Coverage (SBCs) pertaining to health coverage are now required to be distributed every year during open enrollment. SBCs are required for both self-insured and fully funded group plans. Changes to these statements for 2014 plan years include a requirement to state whether plan options meet the minimum essential coverage requirement under the ACA.
The federal government has launched a new one-stop Health Care Changes website to provide employers of all sizes with state-by-state information on their options and responsibilities under the Patient Protection and Affordable Care Act (PPACA). The website is located at http://business.usa.gov/healthcare. The new site is meant to complement, not replace, the government’s existing HealthCare.gov website.
References: Bates, S. (8/1/2013) Start Communicating About Health Care Changes
Miller, S (8/2/2013). Government Launches ACA Compliance Website for Employers. SHRM.org