Virtually all US employers
(regardless of size or whether the employer offers a health plan) are required
to distribute a Notice of Exchanges and Subsidies to each employee (regardless
of part-time, temporary, full-time or health plan enrollment status).
Additionally, beginning on October 1, 2013, this notice must be provided to
each new employee within 14 days of the employee’s start date.
There are two
model notices available, one for employers that offer a company-sponsored health
plan to some or all employees, and one for organizations that do not offer an
employer-sponsored health insurance plan. Both of these model notices are
available for download in the HR Support Center “Essentials” tab under the “HR
Forms” section. (Simply type “Notice of Exchanges and Subsidies” in the Search
Box.) There is also an FAQ document regarding this requirement housed in the
same location. The purpose of the Notice of Exchanges and Subsidies is to
inform employees of the existence of Health Insurance Exchanges (also called
Health Insurance Marketplaces) as well as potential federal subsidies available
to them in 2014.
Should an employee opt to shop in the Exchange, the employee
may use this Notice provided by the employer to enter certain information on
the application. The Exchanges are government-provided virtual marketplaces
intended to offer individuals and small groups “one-stop shopping” to find and
compare private health insurance options.
Open enrollment for health insurance
coverage through the Health Insurance Marketplaces begins October 1, 2013 and
coverage is available beginning on January 1, 2014. On September 11,
2013, the DOL announced that there is no specific fine or penalty for failing
to provide the notice by October 1, 2013. However, the DOL or plan
participants may bring a civil action against an employer for failure to comply
with this notice requirement.
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