As the new Health Insurance Marketplace mandated by the Affordable Care Act (ACA) prepares to open on Oct. 1, 2013, employers subject to the Fair Labor Standards Act are reminded to distribute a notice of available coverage options in the Marketplace (i.e., Marketplace Notice) to employees.听 The notice should be distributed to current employees by Oct. 1 and to new hires within 14 days of the employee鈥檚 start date.听 This mandate is unaffected by the Administration鈥檚 decision to enforcement of ACA鈥檚 employer mandate.
Earlier in the year, DOL issued for employers, including a model notice and new model COBRA election notice.听 The new COBRA election notice includes information about coverage available through the Marketplace.
The Marketplace Notice must be distributed to all employees, regardless of their enrollment status or their part-time or full-time status. 听Spouses and dependents are not required to receive a separate notice.听 In addition, the notice must be provided regardless whether or not听 a large employer is subject to the play-or-pay mandate or whether it offers grandfathered or non-grandfathered health coverage (or no coverage at all).听 Notices must be provided by first-class mail or electronically under the DOL鈥檚 electronic disclosure safe harbor rules.
Employers should pay close attention to the notice requirements to avoid common pitfalls, such as:
- My insurance provider is taking care of the notice requirement for me.听 Be careful!听 Employers are required to send the notice to all employees.听 You should work with your provider to make sure all employees, not just plan participants, receive the notice.
- I just looked at the DOL model notice, and we don鈥檛 have time to fill out individualized information for every employee.听 Don鈥檛 worry!听 The individualized information requested on page 3 of the DOL model notice for employers who offer health coverage is optional.听 See the instructions included in the model notice for more details.
- I鈥檓 sure this requirement doesn鈥檛 apply to my small company.听听Don鈥檛 be so sure!听 As detailed above, the requirement applies to nearly all employers, large or small.