Requirement to Notify Employees of Health Coverage Options

Post Date: 9/13/13
Last Updated: 9/20/13

Summary

Cross References
- 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
- FAQ on Notice of Coverage Options
- Technical Release No. 2013-02

Introduction
Many provisions of the Patient Protection and Affordable Care Act (Affordable Care Act) that become effective beginning in 2014, are designed to expand access to affordable health coverage. These include provisions for coverage to be offered through a Health Insurance Marketplace (Marketplace), premium tax credits to assist individuals in purchasing such coverage, employer notice to employees of coverage options available through the Marketplace, and other related provisions. The Departments of Labor, Health and Human Services (HHS), and the Treasury are working together to develop coordinated regulations and other administrative guidance to assist stakeholders with implementation of the Affordable Care Act.

Beginning January 1, 2014, individuals and employees of small businesses will have access to affordable coverage through a new competitive private health insurance market— the Health Insurance Marketplace. The Marketplace offers "one-stop shopping" to find and compare private health insurance options. Open enrollment for health insurance coverage through the Marketplace begins October 1, 2013. Section 1512 of the Affordable Care Act creates a new Fair Labor Standards Act (FLSA) section 18B requiring a notice to employees of coverage options available through the Marketplace.

This technical release from the Department of Labor provides temporary guidance regarding the notice requirement under FLSA section 18B and announces the availability of the Model Notice to Employees of Coverage Options. This technical release also provides an updated model election notice for group health plans for purposes of the continuation coverage provisions under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) to include additional information regarding health coverage alternatives offered through the Marketplace.

See printable version for remainder of article.
Return to Tax Industry News
© Tax Materials, Inc. 2021