DOL Issues Temporary Guidance on Notice of Coverage

wpengine
July 17, 2013
3 min read

The Department of Labor (DOL) has issued temporary guidance for the Employee Notice of Coverage Options. Employers are not required to provide Notices under this temporary guidance. If preferred, employers can wait until formal guidance is provided later this year.

DOL Issues Temporary Guidance

According to the temporary guidance, the Notice is applicable to all employers that are subject to the Fair Labor Standards Act (FLSA). This includes most employers, regardless of size. Employers must submit the Notice to all current employees by October 1, 2013, and to new hires within 14 days of their employment start date, at least for 2014.
The Notice must be provided to all full and part time employees in writing and delivered either by mail or email (in accordance with ERISA standards for electronic delivery). Notice must be provided regardless of whether the employer sponsors coverage, or the employee is enrolled in an employer-sponsored medical plan.
The Notice must inform employees that if their plan is not affordable or does not meet minimum value, they may be eligible for a subsidy on the Exchange, otherwise referred to as the Marketplace. If the employer sponsored plan does meet minimum value criteria, the Notice must indicate so by checking the box that states, “If checked, this coverage meets the minimum value standard, and the cost of this coverage to you is intended to be affordable, based on employee wages.”
See our previous post on Exchange Notification Templates for more information.
Employers can confirm whether their plans meet the minimum value criteria by using the Minimum Value Calculatorprovided by the Department of Health and Human Services (HHS).
If you have questions regarding these notifications or require assistance in issuing compliant notifications to your employees, call us at 1.800.250.2741 or email solutions@gsanational.com.

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