Sunday, May 12, 2013

The Affordable Care Act contains requirements that employers provide basic information regarding the Healthcare Market Place (formally called the Healthcare Exchange) to employees.

Initially this notice was to be provided on March 1, 2013, however the Department of Health and Human Services delayed the implementation. The DHHS released last week the model forms to be used by companies that offer coverage and by those that choose not to offer coverage. These forms will only apply to employers over 50 full time equivalents.

The model notice required by the employer offering coverage alerts the individual that if the employer offers qualifying coverage and they refuse to enroll they will not be eligible for premium assistance.

Does Employer Health Coverage Affect Eligibility for Premium Savings through the Marketplace?

 Yes. If you have an offer of health coverage from your employer that meets certain standards, you will not be eligible for a tax credit through the Marketplace and may wish to enroll in your employer's health plan.



There is also a model notice for COBRA qualified individuals. The COBRA notice includes this paragraph:

There may be other coverage options for you and your family.  When key parts of the health care law take effect, you'll be able to buy coverage through the Health Insurance Marketplace.  In the Marketplace, you could be eligible for a new kind of tax credit that lowers your monthly premiums right away, and you can see what your premium, deductibles, and out-of-pocket costs will be before you make a decision to enroll.  Being eligible for COBRA does not limit your eligibility for coverage for a tax credit through the Marketplace. Additionally, you may qualify for a special enrollment opportunity for another group health plan for which you are eligible (such as a spouse's plan), even if the plan generally does not accept late enrollees, if you request enrollment within 30 days. 



Employers with more than 50 full time equivalents will be required to provide the appropriate notice by October 1st. Links to the model notices are:

Employer that provides qualifying coverage: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf

Employer that does not provide qualifying coverage: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf

COBRA notice: http://www.dol.gov/ebsa/modelelectionnoticeredline.doc

If you have any questions on how the Affordable Care Act will impact your company or if you want to know if you are in compliance please contact Gary@IlluminareGroupInc.com or use our Contact form at www.IlluminareGroupInc.com.

IRS CIRCULAR 230 — DISCLOSURE NOTICE: 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 is not intended and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS regarding the transaction or matters discussed herein.