Employee Exchange Notice

Under the ACA, employers are required to provide current employees and new hires a notice explaining the Exchange (Marketplace).  On May 8, 2013 the Department of Labor (DOL) issued Technical Release 2013-2 and two model notices. The Technical Release also provides an updated COBRA notice that includes a description of Exchange (Marketplace) coverage. The Technical Release provides temporary guidance that employers may rely upon until further guidance is issued. 

Employers are required to provide the notice to all employees regardless of full or part time status or plan eligibility enrollment. Employers had to provide the notice to current employees by October 1, 2013, and upon hire for new employees after October 1, 2013. Starting January 1, 2014 employers have up to 14 days from the date of hire to provide the notice to new employees.  The notice must be provided by first class mail, or electronically if current DOL requirements for electronic delivery are met (namely, use of electronic media is an integral part of the employee's job or the employee actively elects to receive the notice electronically). 

A PDF copy of the notice for employers who do not offer coverage is available here and the modifiable Microsoft Word version here. A PDF copy of the notice for employers who offer coverage to some or all employees is available here and the modifiable Microsoft Word version here

Under COBRA, a group health plan must give a qualified beneficiary a notice describing COBRA election rights after the individual experiences a qualified event. The DOL has revised the model COBRA notice to include a description of the Exchange (Marketplace) coverage options.  The revised notice can be found here. Use of the appropriately completed model notice will be deemed good faith compliance.

Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation.