The Affordable Care Act adds a new provision to the Fair Labor Standards Act, mandating that employers provide notification — in writing — to their employees:
- Informing the employee of the existence of the Marketplace (referred to in the statute as the Exchange) including a description of the services provided by the Marketplace, and the manner in which the employee may contact the Marketplace to request assistance;
- If the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs, that the employee may be eligible for a premium tax credit under section 36B of the Internal Revenue Code (the Code) if the employee purchases a qualified health plan through the Marketplace; and
- If the employee purchases a qualified health plan through the Marketplace, 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.
(source: Department of Labor Technical Release No. 2013-02)
In welcome news for employers, DOL has released three versions of a model letter that employers may use as a template for creating their own. The model letters can be found on the DOL website.
Here is that important date again: OCTOBER 1, 2013. This is the date by which employers must provide written notification to their employees. New employees hired thereafter must be notified at time of hire.
Questions? Give Virginia Medical Plans a call!