Blue Cross and Blue Shield of Illinois

 

 

May 17, 2013

Legislative Update
Department of Labor Releases Model Exchange Notice for Employers
Note: Article repeated from May 10, 2013 News Alert

The U.S. Department of Labor on May 8 released guidance regarding the employer notification about new coverage options through the health insurance exchange (also known as the health insurance marketplace). The guidance includes model notices for employers that provide a health plan and for those that don’t, and a new deadline for distributing the notice to current and new employees.

The Department of Labor originally delayed the deadline to distribute the notice in January. Employers are required to provide the notice to each new employee at the time of hiring beginning Oct. 1, 2013. For 2014, the department will consider a notice to be provided at the time of hiring if the notice is provided within 14 days of an employee's start date. With respect to employees who are current employees before Oct. 1, 2013, employers are required to provide the notice not later than Oct. 1, 2013.

The notice is required to be provided automatically, free of charge. It can be provided in writing either by first-class mail, or electronically if the department’s electronic disclosure safe harbor requirements are met.

The guidance also provides an updated model election notice for group health plans for purposes of the continuation coverage provisions under COBRA, to include additional information regarding health coverage alternatives offered through the exchange.

We are currently reviewing the guidance and will provide more information as it becomes available.


 
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A Division of Health Care Service Corporation, a Mutual Legal Reserve Company,
an Independent Licensee of the Blue Cross and Blue Shield Association.