As part of the Affordable Care Act, employers are required to provide information to all current and newly hired employees about the availability of health care exchanges. This ruling went into effect October1. The Department of Labor has created two model notices for this purpose, one for employers who provide health insurance coverage for their employees, and one for employers who do not provide coverage.
Notices must include basic information about the available Exchange (in California it is Covered California) a description of the services available, Exchange contact information, notice of whether the employee will lose their employer contribution to company-provided coverage by using the Exchange, and any tax implications.
Covered California has six health insurance companies available for enrollment, and offers a “shop and compare” tool as well as a schedule of education and enrollment events throughout the state. Covered California also offers an online marketplace – Small Business Health Options Program (SHOP) – for employers with 1-50 eligible employees who want to offer health insurance as a benefit.
Although the mandate for employers with more than 50 fulltime employees has been delayed until January, 2015, it’s a good idea to start planning now for how you will meet the requirement and thereby avoid fines.
Providing healthcare coverage is one of the best ways to attract and retain top talent.
