are working diligently to make sure our members are
provided with the most up to date news regarding the information and
requirements of ACA (Healthcare Reform-Patient Portability and Affordable Care
Act Law). Therefore, we are reminding you
that each employer is required by ACA to notify their employees of the upcoming
exchange plans, regardless of whether you offer or provide healthcare to them.
The deadline for this notification is October 1, 2013. Please see the
information and links below. We hope this information will be helpful to you.
always, if you have any questions please reach out to me.
HEALTH INSURANCE MARKET EXCHANGE NOTIFICATION Most employers in Delaware are required to send a written healthcare exchange
notification to their employees by October 1, 2013. The only exceptions to this
are those businesses that have annual gross revenue under $500,000. This
notification also applies to hospitals, schools, and government agencies.
In addition, starting October 1, 2013, the notices have to be given to New
Employees on the date they are hired. Click on this link to access the Exchange Notification Document that
can be used. Information about your company and your current medical insurance
coverage needs to be inserted in Part B before distributing to your employees.
These letters must go out to ALL employees, regardless of the hours they work,
whether or not they are seasonal employees, or whether or not they are eligible
for insurance. For new hires after the October deadline, through 2014,
the notice must be sent out within 14 days of their hire date.
The intent of the Exchange Notification Document is to let employees know about
the upcoming Open Enrollment beginning October 1, 2013 and to make them aware
of a potential Tax Credit based on their household income. The employee should
also know that if they opt for coverage through the Exchange or Marketplace,
they will forfeit the company contribution as well as their ability to pay
their premium share on a pre-tax basis.
An employer can provide 'an alternate notice' as long as it provides the
1) A description of what Exchanges are, what they provide, and where employees can
go to find more information about them; AND
2) Information regarding available tax credits if the employer doesn't provide
minimum essential coverage and the employee purchases health insurance on the
3) A statement that employees who purchase coverage on the Exchange may lose
employer's (tax-free) contribution to the cost of health insurance offered by
the employer. Also, that the employee's contributions to the employer-sponsored
plan are often pre-tax contributions and the employee's contributions for
insurance purchased on the exchange are post-tax contributions.
Failing to meet the October 1, 2013 deadline may result in fines as steep as
$100 per day, per employee. Employers must provide this in writing
by first class mail or electronically. We also encourage you to retain
copies of the letters for proof should your compliance ever be brought into
NEWS FROM ALLEN INSURANCE (BENEFITS
As you may know, effective January 1, 2014 all
individuals are required to have health insurance. Effective
October 1, 2013 individuals will be able to purchase health insurance from
the public Health Insurance Marketplace better known as the
To that end, ACA has mandated that all employers notify
their employees of the ‘Exchange’ availability. This notice must be
provided to all your employees (full and part time) and it does not matter if
you offer or provide them health insurance or not – every employee must get the
sample notice is provided on the government website (Department of Labor) and
there are two models – one for employers who offer coverage (click here
if you offer coverage) and one for employers who do not offer coverage (click
here if you do not offer coverage). This same notice is required to
be presented within 14 days to newly hired employees.