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Posted by on Aug 8, 2013 in Healthcare Reform

Notice to Inform Employees of Coverage Options

Notice to Inform Employees of Coverage Options

Employers regulated by the Fair Labor Standards Act (FSLA) will need to provide notice of coverage options to employees by October 1, 2013.  Full-time and part-time employees, including employees not currently enrolled in a health plan, should receive the notice.  Notifications do not need to be sent to dependents and non-employees covered under the plan.

To offer assistance to the employer, the Department of Labor has created notices which can be used to satisfy this requirement.  One notice is for employers who offer a health plan and the other is for employers who do not offer a health plan.  There is also a notification for those electing to continue with COBRA coverage.

The notice may be provided to employees by first-class mail or electronically and are available both in English and Spanish.

Information regarding the Health Insurance Marketplace, contact information and description of the services provided are included in the notice.

Two additional points are also covered in the notice:

  • A statement informing employees if they purchase a plan through the Marketplace, the employee may lose contributions offered by the employer.
  • A statement explaining if the cost of the plan is more than 9.5% of an employees’ household income, the employee may be eligible for a tax credit.

The Warner Navigator website offers guidance on the notice and has copies of the notices ready for download.  Refer to Employer Compliance under Library.