Employers Get More Time on Health Exchange Notices

MedPage Today by David Pittman, Washington Correspondent –

January 27, 2013:

The March 1 deadline for employers to notify workers about health insurance exchanges available under the Affordable Care Act (ACA) is being pushed back, the government said this week.

Under a provision of the ACA, businesses need to provide to each employee a written notice informing them about the existence of exchanges and the employer’s cost-sharing plans.

The original deadline for providing the notice was March 1, 2013. However, the Labor Department delayed the deadline, saying it was “committed to a smooth implementation process including providing employers with sufficient time to comply.”

“The Department of Labor expects that the timing for distribution of notices will be the late summer or fall of 2013, which will coordinate with the open enrollment period for Exchanges,” the Centers for Medicare and Medicaid Services said in an implementation question-and-answer page posted on its website Thursday.

If the employer plans to pay for less than 60% of the total cost of the health plans it offers to workers, then its employees may be eligible for a premium tax credit to purchase a qualified health plan through an exchange.

The Labor Department is considering providing employers with a model of generic language that could be used to satisfy the notice requirement. The department is coordinating its efforts with the Internal Revenue Service and the Department of Health and Human Services.

Source: John & Rusty Report via Choice Admin