ACA Exchanges Coming Soon…Have You Notified Your Employees?

We’re now just six days away from Oct. 1. That, of course, is the next – and perhaps most significant to date – federal Affordable Care Act (ACA) deadline. It marks the beginning of open enrollment for the new health insurance exchanges.

However, if your business falls under the Fair Labor Standards Act, it’s also the deadline by which you must provide a written notice to your employees containing information about the exchange. Originally, the deadline for this notice requirement for current employees was March 1, but the U.S. Department of Labor postponed it back in January.
Specifically, you’re required to provide notice to your employees: 1) informing them of the existence of an exchange, its services, and how to contact the exchange to obtain assistance; 2) the availability of premium tax credits and cost-sharing reductions if the company-provided health plan covers less than 60% of the total allowed costs of benefits; and 3) the fact that if the employee purchases a health plan from the exchange, any employer contribution to a company-provided health plan is forfeited by the employee. There is no fine or penalty for failing to provide the notice.
For more details, the U.S. Chamber of Commerce has this excellent summary of just what your obligations are.

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