Task 6 – Notify Employees

This topic explains the steps involved in notifying employees.

Overview of Notifications

All employers must notify their employees of coverage options. Regulations apply to both small and Large employers. The employer must notify:

  • All current employees by October 1, 2013
  • All new employees within 14 days of hire
  • Both full-time and part-time employees

There are two types of notices:

  • One notice is if you decide to Play
  • One notice is if you decide to Pay

The notice must inform the employee of the following:

  • The existence of the marketplace (referred to in the statute as the Health Insurance Marketplace), including a description of the services provided by the marketplace, and the manner in which the employee may contact the marketplace to request assistance.
  • If the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60% of such costs, that the employee may be eligible for a premium tax credit under section 36B of the Internal Revenue Code (the “Code”), if the employee purchases a qualified health plan through the marketplace.
  • 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.

What Do You Have to Do?

You must create and provide a Notice to each employee. You:

  • Can use one of the models provided by the Department of Labor or recreate your own
  • Must include information in the notice that is unique to each employer.

www.dol.gov/ebsa/healthreform

Be prepared to help your employees.

Your employees will need information to help them fill out the application for insurance through the Health Insurance Marketplace. Be ready to provide this to your employees. You should be able to get this information from Millennium®/Payentry®.