HEALTH CARE ACTION ITEM – Marketplace Notice: Oct 1, 2013 Deadline
On May 8, 2013, the U.S. Department of Labor (DOL) released guidance and model notices for employers to use in anticipation of the first open enrollment in the Exchange Marketplace.
- This notice applies to all size employers.
- This notice must be distributed to all employees, regardless of the number of hours worked.
- This notice must be distributed whether or not the employee is enrolled on the health plan.
- The law does not require that it be sent to anyone other than employees.
- This notice may be provided by First-Class mail OR may be provided electronically if the requirements of the DOL’s electronic disclosure safe harbor at 29 CFR 2520.104b-1(c) are met. Please see below for additional criteria.
- New Hires: employers must provide a notice of coverage options to employees hired after October 1, 2013 through December 31, 2014 within 14 days of the start of their employment.
The notice includes:
- Notice on the existence of a state insurance Marketplace, including a description of the services provided and the manner in which the employee may contact the exchange to request assistance;
- The employee may be eligible for a premium tax credit and a cost sharing reduction if the employer’s plan covers less than 60% of the total allowed costs of benefits, and the employee purchases a qualified health plan through a state insurance exchange; and
- The employee may lose the employer’s contribution to its health benefits plan if the employee purchases a qualified health plan through a state insurance Marketplace.
These notices can be given to employees utilizing one of two delivery methods:
- Electronic Delivery: This delivery method applies if each plan participant is able to access the document at any location where he or she is reasonably expected to perform his or her duties as an employee. This allows electronic delivery to employees who are not physically present in the worksite on a regular basis, e.g., employees who work from home or travel frequently.
- Paper Delivery: If your ability to communicate with employees through e-mail does not meet the DOL criteria, these notices should be distributed to each employee in person or by utilizing first class mail.
Employees should be advised that this notice is being “given to them as a requirement under the healthcare reform legislation”. For further information or assistance, please contact us.
MEA’s Director of Compensation & Benefits
*This MEA Member Alert is provided for general informational purposes only and does not constitute legal advice.