This new Mandatory Notice requires All Employers to give All Employees this notice. The Government wants to insure ALL EMPLOYEES are informed of all possible Health Insurance options but most importantly about the Health Exchange.(www.Coveredca.com for California’s Exchange)
Completion of the Model Election is Mandatory for the Employer
The Model Election Notice is required to be provided automatically, and free of charge starting October 1st, 2013. This notice must be provided in writing in a manner that can be understood by the average employee. Employers are not required to provide a separate notice to dependents or other individuals who are or may become eligible for coverage under the plan and are not employees.
Employers Timing and Delivery for Issuance of the Notice:
The Model Election Notice is required to be provided automatically, and free of charge starting October 1st 2013.
- Current Employees must receive the notice before October 1st 2013
- New employees within 14 days of an employee’s start date
David’s Comment: This requirement is for the Employer to insure all employees receive this notice. We suggest you create a document to be added to each employee file where the employee signs that they have received this notice. For our clients we will be adding it to the SBC Acknowledgment notice we are currently using.
The Fair Labor Standards Act
On May 8th, 2013 the release of Technical Release No. 2013-02 gives employers guidance for this new requirement. This Technical Release provides temporary guidance regarding the notice requirement under FLSA section 18B and announces the availability of the Model Notice to Employees of Coverage Options. There are three different models necessary for each employer:
Form and Content of the Notice
The Affordable Care Act states that in accordance with regulations promulgated by the Secretary of Labor, an applicable employer must provide each employee at the time of hiring a written notice:
- Informing the employee of the existence of the Marketplace (referred to in the statute as the Exchange) including a description of the services provided by the Marketplace and the manner in which the employee may contact the Marketplace to request assistance;
- If the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs, the employee may be eligible for a premium tax credit under section 36B of the Internal Revenue Code if the employee purchases a qualified health plan through the Marketplace;
- If the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.