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October 1 Notification Deadline: PPACA Health Insurance Marketplace
Sep 16, 2013
OCTOBER 1 EMPLOYEE NOTIFICATION DEADLINE
Gelman, Rosenberg & Freedman CPAs distributed an electronic alert to let clients and friends know about an upcoming deadline that may impact your business under the Patient Protection and Affordable Care Act (PPACA). Entities regulated by the Fair Labor Standards Act (FLSA) must inform current employees no later than October 1, 2013 about the new health care exchanges created by PPACA through which employees may be eligible to purchase health care coverage. Individuals hired after that date must be informed within 14 days of becoming employees.
All employees including full-time, part-time, exempt and non-exempt individuals must be notified of the existence of and receive contact information for the exchange. Employees must also be told about their potential eligibility for premium tax credits or cost-sharing reductions in situations where an employer’s health plan does not provide “minimum value standards” (60% of the total costs of the plan) and the possibility that employees purchasing insurance through the exchange may lose any employer contributions that apply to existing coverage under the employer-sponsored plan.
The Department of Labor has published two “model forms” that businesses can use to communicate all required information to employees. One applies to employers that now offer health insurance; the other applies to employers who do not.
The Department of Labor has also stated that no fine or penalty exists for failing to provide the notice. Employers may communicate by:
1) Sending notifications to employees via the U.S. Postal Service
2) Distributing notifications to employees’ work-related email
3) Hand-delivering notifications to employees
The information in this announcement is provided by Gelman, Rosenberg & Freedman CPAs for general information purposes. It is not intended to replace or substitute legal, accounting, tax or other professional advice, consultation or service. Before making any decision or taking any action, we encourage you to consult with one of our accounting and consulting specialists.
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