March Deadline Extended! Providing Employees with “Notice of Exchange”

The Department of Health and Human Services issued detailed regulations on the establishment of Exchanges, but their directives did not cover specific details about the “Notice of Exchange” that all employers (large and small) are required to provide (and to all new hires thereafter). There are many unanswered questions about the content of the notice, and there is no template to follow.

The notice was to be distributed on March 1, 2013, but this deadline has been extended until late summer or fall. National Insurance Services will continue to monitor and will relay the guidance with the model notice when issued by federal agencies.

The notice must be distributed to all employees and must inform them of the following:

1. The existence of the Exchange, a description of provided services and contact information.
2. The employee’s potential eligibility for government subsidies if the employer’s plan does not meet certain requirements.
3. The employee may become ineligible for a tax-free employer contribution if health insurance coverage is purchased through an Exchange.
4. Explanation of appeal rights