Legal Alerts

Employers Must Give Employees Notice of Health Insurance Exchanges by October 1, 2013

There are two sample notices. The sample notice for employers who offer health insurance may be found at http://templatelab.com/FLSA-with-plans/. The sample notice for employers who do not offer health insurance may be found at http://templatelab.com/FLSA-with-plans/.

Employers must provide the requisite notices to all current employees by October 1, 2013. Employers are required to provide notice to each new employee at the time of hiring beginning October 1, 2013. The guidance provides that notice will be considered to have been provided “at the time of hiring” if the notice is provided within 14 days of an employee’s start date.

The notice must be provided in writing in a manner calculated to be understood by the average employee. It may be provided by first-class mail. Alternatively, it may be provided electronically pursuant to Department of Labor regulation 29 CFR 2520.104b-1(c), which governs the delivery, format and content of notices, and the consent which recipients must give before notices such as this may be sent by electronic delivery.  

In addition to these two model notices, the DOL also published a new model COBRA election notice that incorporates the coverage options that eligible beneficiaries will have available to them through an exchange. Employers who use the model COBRA notice will be considered by the DOL to be in good faith compliance with COBRA’s election notice requirements. The new model COBRA notice and the guidance may be found on the DOL’s Affordable Care Act Website at http://www.dol.gov/ebsa/healthreform/index.html.

The Bottom Line

The anticipated unavailability of health insurance exchanges in some states may result in a modification or delay of the guidance. However, employers should be prepared to provide the required notice on or before October 1, 2013. If you have any questions, make sure to consult with your benefit professionals at Lewis Brisbois Bisgaard & Smith LLP.

If you have any questions, please contact Elise Klein, the chair of our firm’s national Life, Health, Disability & ERISA practice, at 213.680.5153 or Elise.Klein@lewisbrisbois.com.

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