The implementation of the Affordable Care Act is upon us. As the entire healthcare industry shifts gears to comply with the law, it’s important for all employers to double check their own procedures. The deadline for employers to send the required notice to all employees was October 1. If you missed this deadline and have not yet sent these notices, it’s important to take action now in order to comply with the law.
Only employers subject to the Fair Labor Standards Act (FLSA) are required to send this notice. Some smaller businesses may not be subject to this rule, such as those who do not engage in interstate commerce and do not earn more than 500,000 dollars annually (exclusive of taxes at the retail level). However, an employer who runs several small businesses may be subject to FSLA via the “enterprise” rule. It is important for all businesses to be certain of their standing so that they can comply with the ACA.
The required notice should include information on Covered California, the state health insurance marketplace, and the possibility of subsidies to cover the cost of health insurance, when applicable. Whether or not you supply company-based insurance for your employees, this notice is required. It must be sent to employees under the following circumstances:
o All employees – full time, part time, and seasonal
o Both employees who are enrolled in an employer-sponsored plan, as well as those who are not enrolled in such a plan
o Any current Cobra beneficiaries
o Both union and non-union employees
o Any new hires must be given the same notice within 14 days of their start date
For your convenience, the Department of Labor (DOL) has provided model notices which you can supply to your employees (available online). Notices may be distributed in one of three ways, ensuring that each recipient receives the information; they may be sent via first-class mail, hand delivered, or sent electronically. While employers may utilize outside services to deliver the notices, it is their responsibility to ensure that all notices were received on or before the deadline.
Steve Amante is the President and CEO of Amante & Associates Insurance Solutions, Inc. To learn more about Healthcare Reform contact Steve Amante or Frank Faldmo the firm’s Employee Benefits Advisor at (951) 676-8800 or visit: www.amanteandassociates.com
