Employers are required to communicate the timing for open enrollment in the market place exchanges by October 1, 2013.
The Patient Protection and Affordable Care Act (Affordable Care Act) requires all employers to communicate to employees about the upcoming open enrollment period for health insurance. All employers must notify employees that open enrollment for the Marketplace Exchanges begins October 1st in order to meet the January 1, 2014 effective date. Everyone in the United States must have insurance in some form on January 1, 2014. If an individual elects not have insurance, they will be subject to a non-deductible excise tax beginning in 2014.
Even if you do not provide insurance for your employees, the U.S. Department of Labor requires that you communicate directly to your employees and offers these suggestions on how to deliver the notification:
- Attach a notice to employee paychecks.
- Personally hand out the notification to all employees. Simply posting or leaving the notices in a break room or other location for employees to pick up will not satisfy this method.
- Send notices to employees through First Class U.S. Mail.
- Deliver notices through e-mail if all employees have company e-mail addresses.
- Include notices in employee renewal or new hire packets.
For guidance on what to communicate to your employees, contact your insurance broker/agent or see the U.S. Department of Labor website.
What does this mean?
The Affordable Care Act is creating a new Public Marketplace or Exchange that will offer health insurance options for individuals and employers with fewer than 50 employees. Essentially, all individuals must have insurance, and they can choose between insurance provided by their employers or from plans offered in the Public Marketplace. Here’s a breakdown of the sources for insurance, who runs them, and who can participate.
For questions about the Affordable Care Act open enrollment, contact your insurance broker/agent or see the U.S. Department of Labor website.
For help with tax-related issues or concerns, contact Michele Graham, CPA at Harding, Shymanski & Company, P.S.C. at 800.880.7800 ext. 1360.
