When Is A Notice Required or Not?



In July we advised clients that the White House had delayed the implementation of the employer mandate section of the Affordable Care Act [ACA] for one year. In distributing that information we cautioned that the rest of the ACA was intact and very much alive.

aca_flag_gavelThis month our clients are being advised that, in order to avoid the potential of incurring $100 per day fines, employers with even just one employee and at least $500,000 in annual revenue must inform their employees of the existence of ACA public exchanges. This notice to employees must be in writing and take place on or before October 1, 2013. Letters to any new hires must be provided within fourteen days of hire.

Then, as everyone was preparing to notify their employees pursuant to the law, the Department of Labor issued a statement on Sept. 11, 2013, that there will be no penalty imposed on employers that fail to distribute to workers a notice about available coverage under state- and federal-government-run health insurance exchanges (collectively referred to by the government as the “health insurance marketplace”), scheduled to launch in October 2013.

Even with the surprise waiver of sorts, the Department of Labor went further to underscore that it would be a “good idea” to still notify employees. Let’s make clarity out of confusion by letting employees know and we have the template advisory for our clients.

gbac provides its clients with the template communications so that those businesses may properly notify employees in a timely manner. This notification requirement is found under §1512 of the Patient Protection and Affordable Care Act.

About gguilford

A successful executive well positioned to leverage extensive skill and experience in the business, government and political environments within which I have worked to bring energy, vision and skill to managing human capital, strategic planning, crisis management, corporate management, financial management, government and public affairs challenges. Positioning for the future in managing and directing change and as well as seeing and seizing opportunities others miss.
This entry was posted in Association Health Insurance and Employee Benefit Marketplaces, Health Insurance Reform. Bookmark the permalink.

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