CWA HEALTH CARE REFORM UPDATE: Employer Notifications about Coverage Options

When does the employer notification of exchanges begin? What information must the notices provide?

Beginning on October 1, 2013, all employers subject to the Fair Labor Standards Act must provide all employees a written notice of their health insurance coverage optivons. The notification will:

1. Inform the employee of the existence of state-based health insurance exchanges, including a description of the services provided, and the manner in which the employee may contact Exchanges to request assistance.
2. Inform the employee whether the employer plan's share of the total allowed costs of benefits provided under the plan is less than 60%, and that, if so, the employee may be eligible for a premium tax credit if the employee purchases a qualified health plan through an Exchange.
3. Inform the employee that if s/he purchases a qualified health plan through an Exchange, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer, and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.

The Department of Labor has issued two Model Notices for Employers: one for employers who offer a health plan to some or all employees, and one for employers who do not offer a health plan.

For more information, see FAQs about Affordable Care Act Implementation Part XI and Guidance on the Notice to Employees of Coverage Options.