Monthly Archives: September 2013

EMPLOYERS AND THE OCTOBER 1, 2013 NOTICE DEADLINE FOR THE ACA

TOMORROW IS THE DAY THAT THE EXCHANGE OPENS UNDER THE AFFORDABLE CARE ACT – WHAT YOU NEED TO DO NOW!

SMALL BUSINESSES: NOTICE NOT REQUIRED!

By: Pamela Tahim, Esq.  and Matt Kinley, Esq.

On October 1, 2013, the new Health Insurance Exchanges under the Affordable Care Act will be open for enrollment.  Many businesses are still worried and have concerns about what this means for them.  There are two immediate steps that a business should take: 1) Provide notice to its employees by tomorrow of the Exchange; and 2) Contact your insurance broker. Your broker should be able to guide you through the issues posed by the Affordable Care Act.

Employer Exchange Notice Due to Employees by October 1, 2013

Fair Labor Standards Act (FLSA) § 18B requires that employers subject to the FLSA provide a notice to employees by October 1, 2013 and new hires thereafter. Most firms under $500,000 in annual dollars received from “sales made or business done” are exempt from the FLSA and thus exempt from the notice requirement other than those specifically included regardless of annual income, which are hospitals; institutions primarily engaged in the care of the sick, aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state, and local government agencies.

 The model DOL Exchange Notice for employers with a health plan is located at http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf.

 For employers with no health plan, the model notice is at http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf. Part B on the notice for employers with health plans is optional and complicated and many employers with health plans will not use it, preferring instead to customize the information on the Part B notice for employers with no health plans.

 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:

  1.   About the Health Insurance Marketplace;
  2.   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
  3. That if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits

For more information, feel free to contact us at 877.923.0971.