When do I need to inform my employees about the CA Healthcare Exchange?

The Affordable Care Act requires employers to provide their employees with a written notice explaining a state’s health insurance exchange and how an employee may access the exchange. 

But federal officials have delayed a March 1, 2013, deadline that requires employers to notify employees about the exchanges until regulations and a model notice with generic language have been issued. The Department of Labor anticipates final regulations will be available in the early fall of 2013

The notice will inform employees about:

• The existence of the state exchange and a description of the services provided
• Eligibility for a premium tax credit or a cost-sharing reduction if their employer's plan does not meet certain requirements and the employee purchases coverage through the state exchange
• The potential loss of any employer contributions to an employer-sponsored health plan and that all or a portion of an employer contribution toward employer-provided coverage may be excludable for federal income tax purposes
• Whom they should contact at the state exchange for assistance
• Their appeal rights

Until further guidance and the model Notice of Exchange have been issued, employers can plan for compliance by summarizing information about their employer-sponsored coverage, including items such as:

• Employer name, EIN, and contact information
• Employee’s name, hours worked per week, and their full or part-time status
• Employee’s enrollment date for employer-sponsored coverage
• Whether health coverage is being provided to the employee
• Employee and employer contribution amounts
• Frequency of contributions
• Name of the lowest cost plan providing minimum value