What Your Business MUST Do by October 1 to Comply with ObamaCare

Another milestone in the ObamaCare legislation takes place on October 1—the health insurance marketplaces open. These are state and federal insurance exchange Web sites where individuals and small businesses may purchase health plans.

This is critical information for small businesses because companies, regardless of size, are required by law to notify their employees, by October 1, about these ObamaCare marketplaces.

All Businesses Must Comply

“There’s a considerable amount of confusion related to this requirement,” says Chuck Kimball, Director of HR & Benefits at Payday. “Many small employers [those with 50 or fewer full-time employees] believe that because they are not governed by ObamaCare’s mandate, then they are also not required to inform their employees of these marketplaces.” The October 1 notification requirement, however, applies to every business regulated under the Fair Labor Standards Act. “There are no exceptions,” Kimball warns.

Is There a Penalty or a Fine?

Previously, it was unclear whether or not employers would be penalized for failing to provide employees with notice about ObamaCare’s Health Insurance Marketplace. In a recent statement, however, the U.S. Department of Labor clarified: “There is no fine or penalty under the law for failing to provide the notice.”

How to Notify Your Employees

The Department of Labor indicates that the notice should inform employees:

• About the Health Insurance Marketplace;
• That, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance in the Marketplace; and
• That if they buy insurance through the Marketplace, they may lose the employer contribution (if any) to their health benefits.

The Department has posted information about the requirement on its Web site and provided model notices to be used by employers who offer health insurance and those who do not offer health insurance. Click one of the links below to download the form appropriate to your situation.

• My company offers health insurance (PDF)
• My company does NOT offer health insurance (PDF)

These one- to three-page model notices may be downloaded, completed and printed for in-office or postal mail distribution. Use these models for the easiest and most assured way of satisfying the regulation. Be careful to note that new employees hired after October 1 must get the notice within 14 days of their start date.

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