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Take 5: Complying with the Deadline for Affordable Care Act Notices

by Editorial Staff, South Jersey Biz

The Patient Protection and Affordable Care Act’s notice deadline is fast approaching. Employers must notify employees of the Health Insurance Exchange and subsidy eligibility by Oct. 1, or within 14 days of employment after Oct. 1. The requirement applies to all employers covered under the FLSA and must be provided to all full-time and part-time employees, regardless of whether they have health insurance coverage. According to Elizabeth Garcia, shareholder and chair of Parker McCay’s Labor and Employment Group, the notice must contain the following information, in writing:

1. A description of the existence of and services provided by, exchanges (a public exchange also referred to as Health Insurance Marketplaces), as well as contact information for customer service resources within the exchange, and an explanation of appeal rights

2. An explanation of federal subsidies available to buy coverage and the terms of eligibility and ineligibility

3. A mention that if employees purchase a qualified health plan through the exchange, they may lose an employer’s contribution toward employer-provided coverage, and that all or a portion of the employer contribution to employer-provided coverage may be excludable for federal income tax purposes (if the employer provides benefits)

4. The notice must meet certain accessibility and readability requirements.

5. Notices for employers with group health insurance coverage also require information concerning eligibility requirements, dependent eligibility, value standards under PPACA, contact information for employer-sponsored coverage and more. Notification is critical to maintaining compliance with PPACA.

Published (and copyrighted) in South Jersey Biz, Volume 3, Issue 9 (September, 2013).
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