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    Important Obamacare Deadline Approaching
    The Vault

    Important Obamacare Deadline Approaching

    September 2013

    The deadline to provide written notice to employees regarding health care coverage is upon us. According to the ACA, as of October 1, 2013, all employers covered by the Fair Labor Standards Act (those with annual revenue of $500,000 or more) must provide their employees with written notice of their rights to access the new health insurance Marketplaces. This notice must be provided to all employees, regardless of whether the employer currently offers a health insurance program.

    Specifically, these notices must notify employees:

    • About the health insurance Marketplace;
    • That, depending on their income and what coverage may be offered by the employer, employees may be able to get lower cost private insurance in the Marketplace; and
    • That if employees buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits.

    This notice must be provided, without cost, to all employees, regardless of plan-enrollment or employment status by October 1, 2013. Additionally, employers must provide this written notice to all new employees within fourteen (14) days of the employee's start date. Notification may be delivered in-person, by first class mail, or electronically.

    The United States Department of Labor has provided model notices which may be used by employers to comply with the new requirement. There are two separate notices: one designed for employers that do not offer a health insurance plan and one designed for employers that do. These model notices can be accessed on the US Department of Labor's website, located here.

    If you are concerned about financial penalties associated with non-compliance of this requirement, you can rest easy – for now. There are no penalties or fines to employers who fail to provide this notice. However, continued violations of this requirement could trigger investigations by several federal departments including the US Department of Labor and the US Department of Health and Human Services. We encourage you to take action as soon as possible.

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