One of the new Affordable Care Act (ACA) "to-do's" for employers is to notify employees about new health coverage options through the State ACA Health Insurance Marketplaces. Employers are to provide the ACA Marketplace Notice by October 1, 2013 and then at time of hire there-after. A common question from employers has been -- Is there a fine or penalty for not providing the notice? According to a recent FAQ from the US Department of Labor (DOL)... No.
Here is the FAQ provided by the DOL.
Q: Can an employer be fined for failing to provide employees with notice about the Affordable Care Act's new Health Insurance Marketplace?
A: No. If your company is covered by the Fair Labor Standards Act (FLSA), it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013, but there is no fine or penalty under the law for failing to provide the notice.
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.
Employers may use one of these models, as applicable, or a modified version. To read more about the requirements, and access sample notices, see: Employer ACA Marketplace Notice Requirements. The model notices are also available in Spanish and Word format at http://www.dol.gov/ebsa/healthreform/.