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Employer Notice of Exchanges

On May 8, 2013, the Department of Labor issued temporary guidance and model notices that employers may use to notify employees the exchanges. The Affordable Care Act requires employers, that are subject to the Fair Labor Standards Act, to provide a written notice to new hires and current employees informing them about the exchanges and some of the consequences of purchasing coverage through an exchange instead of enrolling in available employer-sponsored coverage. The notice requirement was originally to go into effect for employers beginning on March 1, 2013, but was delayed. The temporary guidance confirms that notices must be automatically provided to current employees by October 1, 2013, and to new employees hired after October 1, 2013, within 14 days of their start date. All employees must receive a notice regardless of their full- or part-time status and regardless of whether they are enrolled in the employer’s plan. Separate notices for dependents or other individuals who are or may become eligible for coverage are not required. The DOL has provided two model notices to assist employers in providing the required information.

You can click the links below to view the model notices:

Notice for Employers WITH Plans
Notice for Employers WITHOUT Plans

New Out of Pocket Expense Limits Announced

The Internal Revenue Service recently provided the new out of pocket maximum expense limits that will apply to HSA compatible high deductible health plans in 2014. These limits are extremely important in 2014 as they will apply to all group health plans. The new limits are as follows: $6,350 for self-only coverage and $12,700 for all other coverage.

This communication is designed to provide a summary of significant developments to our clients. Information presented is based on known provisions. Additional facts and information or future developments may affect the subjects addressed. It is intended to be informational and does not constitute legal advice regarding any specific situation. Plan sponsors should consult and rely on their attorneys for legal advice.