Employers must provide a written notice at least 90 days before the start of each plan year (or as soon as practicable for newly eligible employees).
The US Department of Labor has a Model Notice for employers to use.
Required Notice Elements
The notice must include:
- The employee’s ICHRA allowance amount
- The requirement to maintain individual health coverage
- The right to opt out of the ICHRA
- An explanation of how the ICHRA affects Marketplace Premium Tax Credit (PTC) eligibility
- Substantiation requirements
- When the ICHRA begins
- A statement encouraging employees to review Marketplace options
Failure to issue the notice carries penalties.
Newly Eligible Employees
For employees who become eligible mid-year, the notice must be provided:
- By the eligibility date, or
- As soon as administratively feasible