Feds say employers wonít be fined or face a penalty for failing to provide employees with notice of ACA health exchanges
by Pinedale Online!
September 18, 2013
Earlier, we posted a link to an article on Fox Small Business News website which stated that small business owners may not be aware that beginning October 1st, any business that makes $500,000 in annual revenue and has at least one employee must notify all employees by letter about the Affordable Care Actís health exchanges or face a $100 per day fine. The requirement applies to any business regulated under the Fair Labor Standards Act, regardless of size.
According to the Frequently Asked Questions page on the U.S. Department of Labor website, there is no fine or penalty if a business fails to provides its employees with notice of the new Health Insurance Marketplace.
Click on this link to go to the website: http://www.dol.gov/ebsa/faqs/faq-noticeofcoverageoptions.html (U.S. Department of Labor)
From the U.S. Department of Labor website:
FAQ on Notice of Coverage Options
Q: Can an employer be fined for failing to provide employees with notice about the Affordable Care Act's new Health Insurance Marketplace?
A: No. If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013, but there is no fine or penalty under the law for failing to provide the notice.
The notice should inform employees:
About the Health Insurance Marketplace;
That, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance in the Marketplace; and
That if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits
The U.S. Department of Labor has two model notices to help employers comply. There is one model for employers who do not offer a health plan and another model for employers who offer a health plan or some or all employees:
Model Notice for employers who offer a health plan to some or all employees
Model Notice for employers who do not offer a health plan
The model notices are also available in Spanish and MS Word format at http://www.dol.gov/ebsa/healthreform/.
Employers may use one of these models, as applicable, or a modified version. More compliance assistance information is available in a Technical Release issued by the US Department of Labor.