Blue Cross and Blue Shield of Illinois

January 16, 2013

Legislative Update: Employers’ ACA Notice Requirement Delayed [All Markets]

On Nov. 9, 2012, we reminded employers of a provision of the Affordable Care Act (ACA) that will require employers to provide employees with a notice about the availability of the new health insurance exchanges beginning on March 1, 2013, under a provision of the Affordable Care Act.

The Department of Labor (DOL) has announced that employers will not be held to the March 1 deadline. The DOL has yet to issue a model notice, FAQs or guidance about the employer notice requirement. The Department acknowledged that it would be premature to issue a notice in March because specific exchange information is not yet available. As a result, the upcoming guidance on the provision is expected to reflect a more realistic compliance date.

As a reminder, below are the details of the employer notice requirement.

All employers must notify employees:

  1. Of the existence of the Health Insurance Exchange that will become operative as of Jan. 1, 2014;
  2. Of the employee's potential eligibility for federal financial assistance if the employer's health plan doesn't meet affordability and minimum value criteria under ACA and if employee household income is below certain thresholds; and
  3. That they may lose the employer's contribution to health coverage if they purchase health insurance through the Health Insurance Exchange.

Additional parameters of the notice are that it must:

  1. Be written;
  2. Be provided regardless of the size of the employer; and
  3. Include minimal information about the individual so as not to place a threat to individual privacy.

When the anticipated FAQs are posted, we will share them with you.



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