Jon Enders CPAWhile many of the key provisions of the Affordable Care Act (i.e. Obamacare) won’t take effect until 2014, new disclosure requirements must be met by October 1st of this year.  The health insurance marketplaces created by Obamacare will open on that date, and while most small employers (defined as those with 50 or fewer employees) are not required to offer health insurance coverage, all companies, regardless of size, are required to notify employees of the health insurance marketplaces where individuals and small businesses can shop for health plans.
Key Marketplace Disclosure Requirements
This requirement applies to employers with at least $500,000 of annual revenue. Specifically, the notice must inform employees as to:
  • The existence of the exchange;
  • A description of the services provided by the exchange;
  • How to contact the exchange to request assistance;
  • The employee’s potential eligibility for subsidized coverage on the exchange if the employer’s group health plan doesn’t provide “minimum value” (i.e., the plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs); and
  • The fact that the employee may lose the employer contribution (if any) toward health insurance coverage if he or she chooses to purchase individual coverage on the exchange.

Model Notices

Additionally, the Department of Labor (DOL) has released notices for employers–those who already offer health coverage and those who do not. According to the DOL, these sample notices can be modified; however, key information about the health insurance marketplaces must be included.

For more information on how to meet the October 1st deadline, please contact us or call 513-241-8313.