Under the Affordable Care Act (ACA), all employers will be required to disclose certain information regarding the Marketplace (formally known as the Exchange) to their employees. There are a lot of questions about some of the guidelines associated with the exchange notification requirement.
DOL issued Technical Release No. 2013-02 and provided model notice forms for employers to notify their employees of the Marketplace. The technical release states that DOL is issuing model notices as temporary guidance in response to requests from employers who want to know their obligations under this ACA provision and begin to plan for implementation in the fall of 2013.
Model notice form templates can be found at the following link:
What types of information must be provided to employees?
Later this year, employers will be required to provide employees written notice:
- About the existence of the Marketplace, including a description of the services it provides and how employees can contact the Marketplace for assistance;
- That if the employer plan does not cover at least 60 percent of covered benefits, the employee may be eligible for a premium tax credit or cost-sharing subsidy if he or she purchases coverage through the exchange; and
- That if the employee purchases coverage through the Marketplace, he or she may lose the employer’s contribution to the employer-sponsored plan and associated tax benefits.
Employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. For 2014, DOL will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date.
- For employees who are current employees before October 1, 2013, employers must provide the notice not later than October 1, 2013. The notice is required to be provided automatically, free of charge.
- The notice may be provided by first-class mail; or
- May be provided electronically if the requirements of DOL’s electronic disclosure safe harbor are met.
Where can employers get more information?
Wellmark is here to inform, lead, assist and support you through all the ACA changes. For more information, call your Wellmark representative.
This message provides information of a general nature, and is not intended as legal or tax advice or opinion relative to any specific issue. Additional changes may be made to the regulations of guidance described in this message. You should consider consulting with your lawyer or tax advisor before acting based on this information.
Wellmark is not providing any legal advice with regard to compliance with the requirements of the Affordable Care Act (ACA) or the Mental Health Parity Addiction Equity Act (MHPAEA). Regulations and guidance on specific provisions of the ACA and MHPAEA have been and will continue to be provided by the U.S. Department of Health and Human Services (HHS) and/or other agencies. The information provided reflects Wellmark's understanding of the most current information and is subject to change without further notice. Please note that plan benefits, rates, renewal rate adjustments, and rating impact calculations are subject to change and may be revised during a plan’s rating period based on guidance and regulations issued by HHS or other agencies. Wellmark makes no representation as to the impact of plan changes on a plan's grandfathered status or interpretation or implementation of any other provisions of ACA. Any questions about Wellmark's approach to the ACA of MHPAEA may be referred to your Wellmark account representative. Wellmark will not determine whether coverage is discriminatory or otherwise in violation of Internal Revenue Code Section 105(h). Wellmark also will not provide any testing for compliance with Internal Revenue Code Section 105(h). Wellmark will not be held liable for any penalties or other losses resulting from any employer offering coverage in violation of section 105(h). Wellmark will not determine whether any change in an Employer Administered Funding Arrangement affects a health plan’s grandfathered health plan status under ACA or otherwise complies with ACA. Wellmark will not be held liable for any penalties or other losses resulting from any Employer Administered Funding Arrangement. For purposes of this paragraph, an “Employer Administered Funding Arrangement” is an arrangement administered by an employer in which the employer contributes toward the member’s share of benefit costs (such as the member’s deductible, coinsurance, or copayments) in the absence of which the member would be financially responsible. An Employer Administered Funding Arrangement does not include the employer’s contribution to health insurance premiums or rates.