By Cindy Boyle Lande
Beginning in 2014, individuals and employees of small
businesses will be able to purchase health insurance through health insurance
markets commonly known as the “exchanges.” Open enrollment for health insurance
sold on the exchanges begins October 1, 2013.
Employers must provide the notice to current employees by
October 1, 2013. Following October 1, 2013, employers must continue providing
notice of the exchanges to all new employees at the time
of hiring.
While the ACA requires employers to begin distributing the
notices by October 1, 2013, the Department of Labor has indicated that it will
not seek penalties for violations of this requirement at this time.
However, employers should still attempt to comply with the
ACA requirement by providing the notices by the October 1 deadline to the greatest extent possible. If an employer
discovers that it has missed the October 1 deadline, it should distribute the
notice to all employees as soon as possible and distribute the notice to new
employees going forward. Although a penalty will not apply for failure to
timely distribute the exchange notice, there may be other negative consequences
under ERISA for failing to satisfy the requirement.
If you have questions regarding whether the exchange notice
requirements apply to you, or if you require assistance drafting an exchange
notice which complies with the ACA requirements, you should contact your BrownWinick employment law attorney.
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