Employers Must Mail Letters to All Employees about Exchanges by Oct. 1, 2013
Most employers — even those with just one employee — are required to send a notice to all employees via first-class mail by Oct. 1 informing them about the new public health insurance exchanges. This notification requirement applies to companies with at least one employee and $500,000 in annual revenue. The letters must be sent to all employees, full-time, part-time and temporary regardless of their benefits plan status. After Oct. 1, new employees must receive the letter within 14 days.
The letters must inform employees that the exchange exists and provides details to help employees understand how the exchange could help them. They must include these specific items:
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The existence of the exchange;
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A description of the services provided by the exchange;
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How to contact the exchange to request assistance;
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The employee’s potential eligibility for subsidized coverage on the exchange if your company’s group health plan doesn’t provide “minimum value,” which means the plan’s share of the total allowed cost of benefits provided under the plan is less than 60 percent of such costs; and
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The fact that the employee may lose the employer contribution (if any) toward health insurance coverage if he or she chooses to purchase individual coverage on the exchange.
It is not permissible to use electronic means to send the letter.
If you have any questions or need assistance about implementing these mandates, don’t hesitate to call us.