Employers deadline for disclosure to employees under Affordable Care Act postponed indefinitely

Employers deadline for disclosure to employees under Affordable Care Act postponed indefinitely

The U.S. Department of Labor (DOL) has delayed the original March 1, 2013 deadline for employers to comply with the requirement to provide employees a written notice about Health Insurance Exchanges at the state level, as required under the Patient Protection and Affordable Care Act (PPACA a.k.a. Affordable Care Act). No new deadline has been set yet, but it could be summer or fall. Employers will not be required to comply until further guidance is issued.

DOL is considering providing model language that could be used to satisfy the Exchange notice requirement such that employers are required to provide each employee with a written notice along these lines:

The existence of Exchanges at the state level including a description of the services they will provide and the method for employees to contact the Exchanges for assistance.

If the employer plans share of the total allowed cost of benefits provided under the plan is less than 60 percent, the employee might be eligible for a premium tax credit if he or she buys a qualified health plan through an Exchange.

If the employee buys a qualified health plan through an Exchange, the employee could lose the employer contribution (if any) to any health benefits plan offered by his/her employer. All or part of the employer contribution may be excludable from income for federal income tax purposes.

DOL is also thinking about allowing employers to comply with the notice requirement by giving employees information using an employer coverage template that would be available for download at the Exchange websites.

WANADA members with questions on the Affordable Care Act may contact John ODonnell in the WANADA office, 202-237-7200 or jod@wanada.org.

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