The Affordable Care Act requires employers to provide employees with a written notice about the ACA’s health insurance exchanges beginning on October 1, 2013. However, on September 11, 2013, the Department of Labor issued an FAQ stating that there is no fine or penalty under the law for failing to provide the notice.
Despite the lack of penalty, the DOL also stated that employers should provide the Exchange notices to employees and reiterated the content that should be included. The FAQ also provides links to the model notices issued by the DOL earlier in the year.
Although employers will apparently not be penalized if they do not provide the notice, they should consider how they and their employees can benefit from this information. Providing the Exchange notice can help answer employee questions about the Exchanges and about employee eligibility for coverage under the employer’s health plan or premium tax credits for coverage in the Exchange. Employees may look to their employers for information on their health coverage and providing this notice is one way that employers can be prepared to deal with their questions.
Please contact us if you need a copy of the model notice or visit the DOL site.