All employers with one or more employees and gross revenue of at least $500,000 are subject to the requirement to provide a notice to all employees by 10/01/2013. As a service to VDA Members, B&B Insurance Associates, Inc. has provided the following information regarding the requirements and links to templates for model notices from the Department of Labor.
The Affordable Care Act (ACA or health care reform law) added a section to the Fair Labor Standards Act (FLSA) that requires applicable employers provide a written notice to existing and newly hired employees regarding health insurance exchanges. The notification must be provided to current employees no later than October 1, 2013 and to employees that are hired after October 1, 2013 at the time they are hired. This notification includes all employees regardless of plan enrollment, part-time or full-time status. The employer is not required to provide separate notices to dependents or other individuals who are or may become eligible for coverage under the employer’s plan but who are not employees. Please note: there is no penalty or fine under the law for failing to provide the notice.
The notices should include the following information:
1. Inform employees about the existence of the Health Care Exchange and what types of services will be provided by the Exchange. Also, provide contact information for how employees can reach the Exchange for assistance.
2. Let employees know they may be eligible for a premium tax credit on the Exchange if their employer plan does not cover at least 60 percent of the total allowed cost of benefits and the employee elects to purchase coverage through the exchange. Note: while small employers with fewer than 50 employees are not required to provide health insurance coverage to their employees, you must still provide this notification.
3. Explain that if the employee chooses to buy a qualified health plan through the Exchange, he or she may lose the employer contribution (if any) to any health benefit plan the employer offers, and that all or a portion of the contribution may be excluded from income for Federal tax purposes.
The Technical Release 2013-02 provides the following templates to help employers create the notices:
Also, the IRS has launched a new Affordable Care Act Tax Provisions website at http://www.IRS.gov/aca to educate individuals and businesses on how the ACA may affect them.
In addition to the required notification information, we at B&B Insurance recommend that you include a copy of your current Summary of Benefits and Coverage (SBC) for your health plan, if you offer one, to your employees with this notification to ensure that they have easy access to details about their current plan. If you do not have a copy of your plan’s SBC readily available, you can download it by visiting www.find-sbc.com. Please be sure to keep a copy of the employee notification and any supporting documents at your office to provide proof of compliance with the new requirements.
As your VDSC recommended insurance agency, we are dedicated to assisting you with all your personal and professional insurance needs. If you have any questions regarding Health Care Reform or your health insurance coverage, please contact B&B Insurance Associates at 877-832-9113.
This content is provided solely for informational purposes. It is not intended as and does not constitute legal advice. The information contained herein should not be relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisers.