The Department of Labor released the long-awaited Model Notices employers must distribute regarding the new Health Insurance Marketplace (commonly referred to as “exchanges”). The original deadline for distribution of the notice to employees was March 1, 2013, but the DOL initial deadline was delayed. Employers are now required to distribute this notice to current employees no later than October 1, 2013. In addition, new employees must be given the notice at the time of hire beginning October 1, 2013. For 2014, the DOL will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee’s start date.
According to the DOL, “the notice to inform employees of coverage options must include information regarding the existence of a new Marketplace as well as contact information and description of the services provided by a Marketplace. The notice must also inform the employee that the employee may be eligible for a premium tax credit under section 36B of the Code if the employee purchases a qualified health plan through the Marketplace; and a statement informing the employee that if the employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.”