Did You Know? Exchange Model Notice Expiration Date Extended

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The DOL recently extended the expiration date on its model Exchange notices under the ACA through May 31, 2020. Despite the updated expiration date, the content of the model notices has not substantively changed. The expiration date is included largely as an administrative function for the DOL and does not impact the notices’ applicability or an employer’s ability to use them. The ACA requires employers to provide the exchange notice to all new hires at the time of hiring. There is no annual requirement to provide the notice to existing employees nor is there a fine or penalty for failing to provide the notice. This ACA Compliance Bulletin provides more information on this development.

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MARKET STABILIZATION PROPOSED RULE ISSUED

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OVERVIEW
On Feb. 15, 2017, the Department of Health and Human Services (HHS) issued a market stabilization proposed rule under the Affordable Care Act (ACA). The proposed rule includes new reforms intended to stabilize the individual and small group health insurance markets for the 2018 plan year.

Specifically, the rule proposes a variety of policy and operational changes to existing standards to stabilize the Exchanges, including changes to the annual open enrollment period and special enrollment periods.

To learn more, read the full ACA Compliance Bulletin: Market Stabilization Proposed Rule Issued

 

Employer Marketplace Notices (Section 1411 Certification)

Ahead of the curve logoApplicable Large Employers (ALEs) (those with 50 or more full-time and full-time equivalent employees in a prior calendar year) who are subject to the Affordable Care Act (ACA) employer mandate may be assessed a nondeductible penalty if at least one full-time employee receives subsidized health coverage from an ACA Marketplace. Beginning in 2016, the Federal Marketplace (Healthcare.gov) will notify certain employers when an employee has enrolled in Marketplace coverage, and has qualified for and receives premium and/or cost-sharing assistance for at least one month.

The Marketplace has no way of knowing if any given employer is an ALE subject to the play-or-pay penalties. Consequently, all employers whose employees receive a subsidy should receive a notice, called a Section 1411 Certification, even if they are not subject to play-or-pay. Therefore, all employers should be mindful that these Marketplace notices may be coming, particularly if the employer has any indication that an employee has enrolled in Marketplace coverage.

To learn more about what an employer should do, read the full article: Employer Marketplace Notices -Section 1411 Certifications