For Immediate Release:

Saturday, September 21, 2013

The first big step in implementation of the Affordable Care Act is here, the opening of the Healthcare Marketplaces (formerly called the healthcare exchange) on October 1. Along with the opening of the Marketplace all companies must comply with the mandated notice requirement of the Affordable Care Act. These notices must be distributed to every employee, including all part time, seasonal or temporary employees, no later than October 1.
The employer mandate portion of the Affordable Care Act has been delayed until January 1, 2015; however the individual mandate has not been delayed. On January 1, 2015 all legal residents of the United States should be covered under some type of qualifying insurance plan.  There are several avenues to accomplish this mandate, Medicare, Medicaid, military coverage, employer group coverage and individual coverage. If an individual is not covered under a qualifying plan there will be a personal penalty due at the end of 2014 that will be enforced when the individual files there income tax return for 2014.
As part of the individual mandate the Marketplace will be available to individuals and small employers on October 1. The Marketplace will allow individuals and small businesses to evaluate and compare insurance coverage options. The options will be presented in a standard format so that you can compare ?apples to apples? with the monthly rates listed for each type policy. In addition to the coverage options and rates there will be a calculation to determine the individual?s qualification for federal premium subsidies to help pay the monthly premiums. For individuals and families who have a household income of between 100% and 400% of the federal poverty level there will be federal assistance to help pay the premiums. The Marketplace can be accessed at www.healthcare.gov. There are also local organizations being set up to assist individuals in enrolling. A list of these offices can also be found on the website.
The mandated notice informs the individual of the existence of the ?healthcare marketplace? and of any insurance offered through the employer. There are two notices. One stating there is coverage offered through the employer and one stating there is no coverage offered through the employer. Here are the links.
For companies offering coverage: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf
For companies not offering coverage: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf
These notices can be used ?as is? with the appropriate company information entered on page two of each notice. It is also recommended that, if possible, you have a tracking system in place to verify every employee received the notice.
If you have any questions regarding the Affordable Care Act, healthcare marketplaces or employee benefit compliance give us a call. You can contact Gary at 615-542-1919 or gary@IlluminareGroupInc.com.
Gary Garner
IRS Circular 230 Disclosure: IRS Circular 230 regulates written communications about federal tax matters between tax advisors and their clients. To the extent the preceding correspondence and / or any attachment is a written tax advice communication, it is not a full ?covered opinion?. Accordingly, this advice in not intended and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS regarding the transaction of matters discussed herein.