Blue Cross and Blue Shield of Illinois

 

August 30, 2013

Legislative Update
Update: Additional Information Regarding Employer Exchange Notice

The Oct. 1 deadline for employers to distribute the notice about the Health Insurance Marketplace of Illinois to employees is approaching. Below are some frequently asked questions and answers about the notice, including one update and one new question about what information employers need to provide on the notice.
                                                                                                 
What is the Marketplace notification?
Employers who are subject to the Fair Labor Standards Act (FLSA) have to send a notice to employees about new coverage options through the Marketplace.

To which employers does this apply?
According to the Department of Labor, the FLSA applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce. For most employers, a test of not less than $500,000 in annual dollar volume of business applies.

The FLSA also specifically covers the following entities: hospitals; institutions primarily engaged in the care of the sick, the aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state and local government agencies.

NEW: What information do employers need to provide?
The employer is required to provide the information on the first page of the notice. The second two pages are optional.

What is the deadline for distributing the notice?
Employers are required to provide the notice to each new employee at the time of hiring beginning Oct. 1, 2013. For 2014, an employer has to provide the notice 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 by Oct. 1, 2013.

By what method does the employer have to distribute the notice?
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.

UPDATED: Is there a model notice that employers can use?
Yes. The federal government has released model notices for employers that provide a health plan and for those that don’t.

Employers can use these notices until the federal government releases final notices. The forms are also available in Spanish here (provide a health plan) and here (don’t provide a health plan). Additional details are on the Department of Labor website.

The federal government may be updating the notice in the future. However, employers are allowed to use the currently available versions.

Will Blue Cross and Blue Shield of Illinois be preparing and/or distributing the notice for groups?
We currently do not plan to prepare or distribute these notices on behalf of employers.

We are still evaluating the most cohesive method to assist employers with completing certain fields in the model notice. When we reach a final business decision and approach, we will provide additional communication and guidance. 

As always, if you have questions about an Affordable Care Act provision, contact your account representative.

 

 
.

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