Health care law requirement #2: Tell employees about exchanges

Health care law requirement #2: Tell employees about exchanges

Another reporting requirement from the Patient Protection and Affordability Act (PPACA, a.k.a. ObamaCare) is for employers to provide each employee a written notice containing certain information about the applicable Health Insurance Exchange. All employers must comply, regardless of size by March 1, 2013. One major stumbling block: The exchanges are not set up yet. They are supposed to be ready by January 1, 2014, though Maryland and DC plan to have theirs running by this fall. Virginia has opted to let the federal government run its exchange.

An article in the Washington Post indicated that states will be given extra time to set up the exchanges. There is no deadline, said Gary M. Cohen, director of the federal Center for Consumer Information and Insurance Oversight. States will be given approval once they show they can meet all the requirements.

The law has two other required notices that employers must give employees:

Summary of Benefits and Coverage (SBC). Starting with plan years and open enrollment periods beginning on or after September 23, 2012, employers must provide participants and beneficiaries a summary of benefits and coverage at specified times during the enrollment process and upon request. Insured group health plans may satisfy this requirement if the issuer provides a timely and complete SBC to the participant or beneficiary.

Notice of plan changes. If any material modification is made in any of the terms of the plan or coverage that would affect the content of the SBC, that is not reflected in the most recently provided SBC, and that occurs other than in connection with coverage renewal or reissuance, the plan or issuer must provide notice to enrollees no later than 60 days before the effective date of the change.

(Thanks to VADA for this information)