Under the Patient Protection and Affordable Care Act (PPACA), employers are required to provide a notice to their current employees of coverage options available through a Health Insurance Marketplace, previously called an exchange, by October 1, 2013. Employers must also provide the notice within 14 days of a new hire’s start date on or after October 1st.

Recently the Department of Labor (DOL) released a Frequently Asked Question which clarified that no fine or penalty will apply to an employer who fails to provide this notice to employees. Although there is no specific penalty for failing to distribute the notice, such inaction is not encouraged. There are many federal regulations that do not have penalties associated with them but are still required. Failing to abide by these laws would be noncompliant. In addition, the notice contains valuable information about the Health Insurance Marketplace and, if distributed, may reduce the number of questions raised by employees about their coverage options. William Gallagher Associates advises our clients, even in the absence of any known penalties, to take all necessary measures to provide this notice to all employees before the October 1, 2013 deadline using the DOL provided model notice.

If you have any questions, please contact your WGA Client Executive or Client Service Manager.