As a reminder, the Patient Protection and Affordable Care Act (commonly referred to as “Obamacare”) requires most employers to provide each of their employees a written “Exchange Notice” on or before October 1, 2013. The purpose of the Exchange Notice is to inform employees of the existence of government-run health exchanges, also known as the “Health Insurance Marketplace”, where health insurance can be obtained.
The notification requirement applies to most employers that have $500,000 or more in annual revenue. If the requirement applies to your company, the Exchange Notice must be provided to all employees regardless of plan-enrollment status or eligibility and regardless of whether the employee is part-time or full-time status. In addition, the Exchange Notice must be provided to all new employees hired after October 1, 2013.
The Department of Labor has issued model notices for use by employers. One notice is provided for use by employers that offer a health plan to some or all employees, and a second notice is available for employers that do not offer a health plan.
The notice for employers that offer a health plan is available at: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf.
The notice for employers that do not offer a health plan is available at: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf.
We also recommend that you include a cover letter explaining why the notice is being provided. A cover letter is not required, but it may reduce the number of employees who contact you to inquire about the purpose of the Exchange Notice.
The Exchange Notice can be distributed electronically, by first class mail or by hand delivery, although it is recommended that you obtain a signed receipt or other confirmation from the employee for any hand delivered Exchange Notices.
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