Download the AssuredPartners NL Sept. 12, 2013 Compliance Observer here: Compliance Observer.
No Penalty or Fine for Failure to Provide a Marketplace/Exchange Notice
On September 11, 2013, the Department of Labor issued a FAQ on the Marketplace/Exchange Notice which indicated that there is no fine or penalty under the law for failing to provide the notice. The Q&A is below:
Q: Can an employer be fined for failing to provide employees with notice about the Affordable Care Act’s new Health Insurance Marketplace?
A: No. If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013, but there is no fine or penalty under the law for failing to provide the notice.
The notice should inform employees:
- About the Health Insurance Marketplace;
- That, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance in the Marketplace; and
- That if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits
The U.S. Department of Labor has two model notices to help employers comply. There is one model for employers who do not offer a health plan and another model for employers who offer a health plan or some or all employees:
- Model Notice for employers who offer a health plan to some or all employees
- Model Notice for employers who do not offer a health plan
The model notices are also available in Spanish and MS Word format at http://www.dol.gov/ebsa/healthreform/index.html.
Employers may use one of these models, as applicable, or a modified version. More compliance assistance information is available in a Technical Release issued by the US Department of Labor.
While there are no penalties for failure to provide employees with the Notice, we recommend that you distribute the notice to all employees by October 1, 2013 and to new hires within 14 days of their start date as outlined by the DOL. The information that employers provide on the Marketplace/Exchange Notice will be used by employees to apply for coverage in the Marketplace and will assist in determining if an employee is eligible for a subsidy.
Podcast to Help Employees Understand the Marketplace & the Notice
AssuredPartners NL, in conjunction with our parent company, Assured Partners, is providing a video podcast that you can make available to your employees with common questions about the Marketplaces (Exchanges). Please feel free to provide employees with this link.
To access the podcast, click on the following link: http://neacelukens.com/regulatory-compliance-updates/sept-10-2013-podcast-health-insurance-marketplaces/