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Broker News | Vol. 8, No. 3 | February 8, 2013
Broker News | Vol. 8, No. 3 | February 8, 2013

Employer Notice of Health Insurance Exchange to Employees – Delayed

The Departments of Labor, Health and Human Services, and U.S. Treasury issued new guidance on January 24, 2013 delaying the requirement that employers notify all employees about the existence of the new health insurance exchanges.

Originally scheduled to take effect by March 1 of this year, the notice requirement has been put on hold until late summer or early fall of 2013. A new effective date has not yet been determined. Once a new effective date is announced, it is expected that employers will be required to distribute the notice to all existing employees, as well as to new employees upon hire.

The Department of Labor may issue model language for employers to use in satisfying the notice requirement. 

It is expected that the notice must include:

  • A description of what Exchanges are, what they provide, and where employees can go to find more information about them;
  • Information regarding available tax credits if the employer doesn’t provide minimum essential coverage and the employee purchases health insurance on the Exchange; and
  • A statement that employees who purchase coverage on the Exchange may lose any employer contributions and that these contributions may be excludable from employees’ income when they file their Federal income tax

We will keep you informed when new guidance becomes available.

Please visit our Health Reform page often for the latest information and updates.


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