What the Notice Is
The ACA requires most employers to give all new employees a written notice about the Health Insurance Marketplace, also called the Exchange. The notice explains that Marketplace coverage is available and how it relates to the employer’s coverage and to Premium Tax Credits (PTCs).
- California’s Marketplace is Covered California.
- Nevada’s Marketplace is Nevada Health Link.
Which Employers It Applies To
The requirement applies to employers covered by the Fair Labor Standards Act (FLSA), which includes most employers, not just Applicable Large Employers (ALEs). It also applies whether or not the employer offers health coverage.
Key Requirements
- Who receives it: All new employees, full-time or part-time, whether or not they’re eligible for the employer’s coverage.
- Timing: Within 14 days of the employee’s start date, even if the employee won’t be eligible for coverage until later.
- Content: The notice tells employees:
- That the Marketplace exists, what it offers, and how to contact it
- That they may be eligible for a PTC if the employer’s plan doesn’t meet minimum value standards
- That if they buy Marketplace coverage, they may lose any employer contribution toward coverage
- Model notices: The U.S. Department of Labor (DOL) provides model notices for employers that offer coverage and for those that don’t. The DOL updates them from time to time.
- Delivery: By first-class mail, or electronically if the DOL’s electronic disclosure rules are met.
The DOL hasn’t set a specific penalty for not providing the notice, but it remains a legal requirement.
Important: This information is provided for general educational purposes. It is not legal or tax advice. How these rules apply depends on each employer’s specific circumstances, so employers should review their situation with their own legal counsel, ERISA attorney, CPA or tax advisor.