Sponsel CPA Group would like to remind all of its clients about the October 1, 2013 deadline to give notice to employees about healthcare coverage options under the Patient Protection and Affordable Care Act (ACA or Obamacare). Even though the employer mandate has been delayed until 2015, most other provisions of healthcare reform will take effect as originally passed.
This notice requirement applies to all employers covered by the Fair Labor Standards Act (FLSA), even if the employer does not offer a health insurance plan to its employees.
Does FLSA apply to my company?
The FLSA applies to any employer engaged in interstate commerce that employs one or more people and has sales greater than $500,000 per year. It also covers hospitals, institutions primarily engaged in healthcare, schools and government agencies. The Department of Labor offers an online assessment tool to help determine if FLSA applies to your business: www.dol.gov/elaws/esa/flsa/scope/screen24.asp
Who should receive the notice?
FLSA-covered employers must provide a notice of coverage options to all current employees (full- or part-time). Employers are not required to provide a separate notice to dependents or any other non-employees covered or eligible for the health plan.
The notice should include:
The notice must inform employees of their coverage options and should include information about the new Health Insurance Marketplace, commonly known as state exchanges. The notice should include:
- Services provided by the exchanges
- Information on how an employee may be eligible for a premium tax credit if they purchase coverage through the exchange
- A statement that if an employee purchases a plan through the exchange, they could lose their employer contribution to any health benefits offered by the employer
- Contact information for the exchanges
A sample notice can be found here for companies that currently offer plans: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf.
And go here for a sample notice for companies that do not offer plans: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf.
What is the deadline to provide the notice?
The employer must provide the notice to all current employees (full- or part-time) by October 1, 2013. Any new employee hired on or after October 1, 2013 should receive the notice no later than 14 days after their start date. The notice must be in writing and can be delivered to the employee in one of three ways:
- Hand delivered
- First-class U.S. Mail
- Electronic mail (but only if Department of Labor’s electronic disclosure safe harbor requirements are met (29 CFR 2520.104b-1(c))
If you need any assistance with healthcare compliance, please contact Lisa Purichia at (317) 608-6693 or [email protected].