Notice of Insurance Marketplace - Due Date Approaching
An October 1, 2013 deadline is looming for many employers to give employees written notices under the Patient Protection and Affordable Care Act (PPACA, commonly known as the health care reform act.)
What Does the Notice Do?
The notices are intended to help employees evaluate health care options available through the online marketplace for health insurance created by PPACA.
Which Employers Need to Give Notices? Which Employees Get Notices?
Each employer that is subject to the Fair Labor Standards Act (“FLSA”) must provide a written “Notice of Insurance Marketplace” (“Notice”) to its employees. The Notice must be distributed to all current employees by October 1, 2013. This includes both full-time and part-time employees, whether or not the employees participate in the employer’s health plan.
What Needs to be in the Notice?
The Notice must include, for example:
- A description of the services that are provided by the Insurance Marketplace;
- Information regarding how the employee may contact the Marketplace to request assistance;
- A statement that the employee may be eligible for a premium assistance tax credit if the employer sponsors a health plan that does not provide minimum value; and
- A statement that the employee may lose any relevant employer contribution if the employee purchases health insurance coverage though the Marketplace.
The U.S. Department of Labor has published two model Notices that employers may use to satisfy the distribution requirement. One model Notice is for use by an employer that maintains a health plan for some or all of its employees. The other model Notice is for use by an employer that maintains no health plan for any of its employees. Each model Notice can be found on the U.S. Department of Labor’s website (We have identified that the following link is no longer active, and it has been removed).
How Should Notices be Distributed?
The Notice may be provided by first class mail or electronically if certain requirements are met. A third party (such as a health plan’s third party administrator) may provide the Notice on the employer’s behalf provided that the Notice is timely distributed and includes the required information. Any new employee who is hired on or after October 1, 2013 must receive the Notice within 14 days of the date on which he or she begins employment.
Please contact your Foster Swift professional with any questions about the Notice of Insurance Marketplace.
Categories: Health Care Reform
With a business-minded approach, and service-oriented delivery, Mindi helps clients navigate challenges and solve problems in the areas of employee benefits law and health care law. Mindi has spoken and written extensively on employee benefits, health care reform, and health care law topics, and is actively involved in a number of legal, professional and industry organizations focused on these issues.View All Posts by Author ›
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Best Lawyers® 2020
Congratulations to the attorneys of the Health Care practice group at Foster Swift Collins & Smith, PC for their inclusion in the Best Lawyers in America 2020 edition. Firm-wide, 42 lawyers were listed. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation and as lawyers are not required or allowed to pay a fee to be listed; inclusion in Best Lawyers is considered a singular honor. Health Care practice group members listed in Best Lawyers are as follows:
- Gilbert M. Frimet, Southfield
- Richard C. Kraus, Lansing
- Gary J. McRay, Lansing
- Jack A. Siebers, Grand Rapids/Holland
- Jennifer B. Van Regenmorter, Holland
To see the full list of Foster Swift attorneys listed in Best Lawyers 2020, click here.