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PPACA Insurance

New PPACA Requirement for Employers Takes Effect October 1

A new Patient Protection and Affordable Care Act (PPACA) requirement will be in effect for employers beginning October 1, 2013. In order to comply, employers must provide written notice informing the employee about health care coverage options at the time of the employee’s hire. Additionally, employees hired prior to October 1, 2013, must be provided the written notice or before October 1, 2013.

The PPACA requires that employers must provide the notice to each employee, regardless of full- or part-time status or whether or not the employee has previously elected to participate in the company health care coverage options. The notice may be delivered electronically or via first-class mail and must include the following:

1.      Information about the existence of state or federal benefits exchanges (Exchanges/Marketplaces)

2.      Explanation that if the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent, the employee may be eligible for a federal premium tax credit if the employee elects to purchase a qualified health plan through an Exchange/Marketplace.

3.      A statement informing the employee that if he or she purchases a qualified health plan through an Exchange/Marketplace, he or she may lose the employer contribution to any health benefits plans offered by the employer.  The statement must also inform the employee that all or a portion of such contribution may be excludable from income for federal income tax purposes.

The notice must be written so that the average employee can understand its contents. The Department of labor (DOL) provided two model notices as part of Technical Release 2013-02, dated May 8, 2013; one for employers that provide health care benefits and the other for employers that do not. Employers may modify the model language so long as the modified notice satisfies the content requirements previously described.

For the latest information about Exchanges/Marketplaces and other PPACA-related topics, we invite you to visit


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