As reported in our article dated December 6, 2012, all employers must provide a Notice to their employees describing the availability of the health care Exchanges for purchasing health coverage. The Notice was required to be distributed by March 1, 2013. The Department of Labor has delayed the notification requirement to give employers additional time to comply. While no distribution date has been set, the DOL has stated that it expects to require distribution in the late summer or fall of 2013 to coordinate with the open enrollment period for Exchanges.
The DOL is considering providing a model notice to satisfy the distribution requirement and expects to have the model language available before distribution is required. Once required, the Notice must explain the benefits of health plans offered through state Exchanges and explain what happens if an employee purchases health coverage through an Exchange instead of electing employer-sponsored health coverage. Specifically, the Notice must describe:
- The employee’s local state Exchange, including a description of services provided by the Exchange;
- Contact information for the Exchange;
- The availability of premium tax credits and cost-sharing reductions for purchasing coverage through an Exchange if employer coverage does not provide minimum value; and
- If coverage is purchased through an Exchange, the employee might lose an employer contribution toward the cost of coverage and some of that contribution might be excluded from federal income tax.
More guidance will be forthcoming.
