Affordable Care Act - Action Required by 10/1/13

Sep 17, 2013

As you know, the primary purpose of the Affordable Care Act was to expand access to affordable health coverage. Central to this is the creation of new lnsurance Exchanges, which are being referred to as the Health Insurance Marketplace (or the Marketplace). The Marketplace is scheduled to be up and running by 10/1/13.

To make sure employees have the information they need to allow them access to the benefits offered through the Marketplace, starting 10/1/13, most employers are required to provide their employees written notice of the health coverage it offers along with an explanation of the new Health Insurance Marketplace coverage options. Employees will take this information to the Marketplace when they apply for insurance. Click HERE to learn more and find out if you meet these requirements.

These notices are required to include specific information. We have provided two Model Notices (one for employers offering insurance coverage to employees and one for employers not offering coverage) that may be used to meet these requirements. These notices can be accessed on our website at

If insurance coverage is provided to employees, the form asks if the coverage meets the minimum value standard and if the cost of coverage is affordable. Coverage is considered affordable if the employee's share of the self-only premium for the employee's lowest cost plan does not exceed 9.5% of the employee's W-2 wages. We suggest you contact your insurance provider for guidance with determining whether or not your coverage meets the minimum value standard.

The notice must be provided in writing by first-class mail or, if certain requirements are met, it can be delivered electronically. It must be provided by 10/1/13 to employees hired before that date. Employees hired after 9/30/13, must be given the notice at the time of hiring.

Please give us a call at 620.241.1826 or 620.662.3358 if you have any questions or need any assistance meeting this new notice requirement.