Effective October 1, 2013, employers must notify new and existing employees in writing about their state’s health benefit exchange and advance premium tax credits available through the exchange to help them purchase individual coverage.
Click to get a MN Employer Health Insurance Quote
The requirement is contained in Section 218b of the federal Fair Labor Standards Act of 1938. The U.S. Department of Labor is charged with issuing regulations providing more specific guidance on the notice but has not yet done so. Section 218b requires the following information be included in the notice:
- A description of the services provided by the exchange and the manner in which the employee may contact the exchange to request assistance.
- If an employer provides employer-sponsored health coverage that does not provide minimum actuarial value (60 percent of expected costs for benefits provided under the plan), the employee may be eligible for a premium tax credit and reduced cost sharing (deductibles, copayments, and coinsurance) if the employee purchases individual coverage through the exchange.
- If an employee purchases a qualified health plan through the exchange, the employee may lose the employer contribution (if any) 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.
Employer Model Notices:
Employers that offer group health insurance: Click here
Employers that do not offer group health insurance: Click here
Recent Blog Posts
Health Insurance Quotes
GET QUOTES NOW!