September 30, 21013

This is a reminder that beginning October 1, 2013, employers must give written notice to all employees about coverage options under the federal and state heath benefits exchanges created by the Patient Protection and Affordable Care Act.   The Department of Labor has prepared model notice forms for employers to use.   One model notice form is for employers that do not offer a health plan and the other is for employers that do offer a plan for some or all of their employees.  Please click the links for the model notices and they are also available on the Department of Labor’s website.

Employers are not required to use the model forms and can create their own, but the notice must contain specific information:

1. Information about the existence of the exchanges (called “the Marketplace”), the services they provide, and contact information; and  

2. If the employer’s share of the total allowed costs of benefits under the plan is less  than 60 percent, the employee may be eligible for a premium tax credit if the employee purchases a plan through the Marketplace; 

3. If the employee purchases a plan through the Marketplace, the employee may lose the employer’s premium contribution to the employer’s plan and that all or some of such contribution may have been excludable from income for tax purposes. 

The appropriate notice must be distributed to all employees regardless of their eligibility status and to all new hires. 

Note that the Department of Labor also announced an updated model COBRA election notice that incorporates changes made by the Patient Protection and Affordable Care Act.  Please click for the model election notice and it is also available on the Department of Labor’s website.

If you have any questions, please do not hesitate to contact us.

Stoneman, Chandler & Miller LLP
99 High Street
Boston, MA 02110
617-542-6789 phone
617-556-8989 fax

This client alert, which may be considered advertising under the ethical rules of certain jurisdictions, should not be construed as legal advice or a legal opinion on any specific facts or circumstances by Stoneman, Chandler & Miller LLP and its attorneys. This client alert is intended for general information purposes only and you should consult a Stoneman, Chandler & Miller LLP attorney concerning any specific legal questions you may have. 
© 2013 Stoneman, Chandler & Miller LLP