ACA requires an Affordable Insurance Marketplace (also known as Exchange) to operate in each state by January 1, 2014. A Marketplace will not replace buying health insurance privately. This simply means that in addition to being able to buy health insurance privately, consumers and employers will have a Marketplace as another option for purchasing health insurance.
Most employers* are required to provide a written notice to all employees, whether part-time or full-time, about their respective state’s Marketplace that will be in operation in 2014. Recently, the Department of Labor (DOL) issued the technical release No. 2013-02 that offers temporary guidance for employers regarding this requirement. The technical release can be found at dol.gov. The DOL also released two model notices:
- Model Notice for employers who offer a health plan (http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf)
- Model Notice for employers who do not offer a health plan (http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf
*Most employers mean those employers who are subject to requirements of the Fair Labor Standards Act (FLSA). Generally, the FLSA applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most firms, a test of not less than $500,000 in annual dollar volume of business applies.
What you need to do:
- The written notice from you to all current employees about Marketplaces is required by October 1, 2013 but you may start notifying them now if you wish. Employers must provide the written notice to all new employees at the time of hiring beginning October 1, 2013.
- You may use the model notices release by DOL (listed above) or create your own notice as long as it covers the content requirements outlined in their technical release No. 2013-02.
If you have any questions, please feel free to contact USA Insurance Services, Neal McConnico at 1-800-237-0472.