March 1, 2013, Deadline for Employers to Provide Notice to Employees of Healthcare Exchange Postponed Indefinitely

February 26, 2013

By: Veronica P. Hallett, Esq.

After the passage of the Patient Protection and Affordable Care Act ("ACA"), commonly known as "Obamacare," on March 23, 2010, federal regulators announced that all employers, as defined by the Fair Labor Standards Act, would be required to provide a notice to employees ("Notice") of the availability of the American Health Benefit Exchanges ("Exchange") being created by the ACA. The Notice was initially required to be disseminated by employers by March 1, 2013. The deadline for dissemination of the notice has now been postponed indefinitely.

The Notice must be in written form and include:

  1. Information regarding the existence or creation of an Exchange, including a description of the Exchange's services and contact information of the exchange, if available;
  2. A statement that an employee may be eligible for premium tax credits if the employee purchases coverage through the exchange; and
  3. A warning that an employee might lose his or her employer's contribution toward the cost of health coverage if the employee purchases coverage through the Exchange.

The Notice has been a cause of significant concern to employers in New Jersey because of the fact that New Jersey's Exchange has not yet been created. In fact, in December 2012, Governor Christie vetoed legislation that would have established New Jersey's Exchange, citing a lack of regulations and guidance by the federal government on the issue of how exactly to establish the Exchange. Because the Exchange has not yet been created, many local employers were understandably confused as to how to notice their employees and what information to include in the Notice.

Apparently recognizing the lack of federal guidance or clarification on the issue, the Departments of Health and Human Services, Labor and Treasury announced on January 24, 2013, in a new set of frequently asked questions ("FAQ") and answers jointly issued by the three (3) Departments, that the Notice requirement will not go into effect on March 1, 2013. In fact, it has been postponed until such time as regulations are issued and "become applicable." The Departments are also considering providing "model, generic language" that employers may use to simplify and streamline the Notice process. You may view the newly issued FAQ here.

Florio Perrucci Steinhardt & Fader, LLC, has a team of experienced labor attorneys to assist your business with all its needs in understanding and complying with the Affordable Care Act in the most affordable manner for your business in the coming years. You may contact the Firm's labor and employment group at 908-454-8300.

Do you like this post?
Phillipsburg Office

235 Broubalow Way
Phillipsburg, NJ 08865
t: (908) 454-8300
f: (908) 454-5827

Get Directions

Rochelle Park Office

218 Rt. 17 North
Suite 410
Rochelle Park, NJ 07662
t: (201) 843-5858
f: (201) 843-5877
Get Directions

Cherry Hill Office

1010 Kings Hwy South
Building 2
Cherry Hill, NJ 08034
t: (856) 853-5530
f: (856) 354-8318
Get Directions

Bethlehem Office

60 West Broad Street
Suite 102
Bethlehem, PA 18018
t: (610) 691-7900
f: (610) 691-0841
Get Directions

New York Office

80 Wall Street
Suite 815
New York, NY 10005
t: (212) 792- 9070
f: (908) 454-5827
Get Directions

Harrisburg Office

221 Pine Street
Harrisburg, PA 17113
t: (717) 963-3182
f: (717) 963-3621

Get Directions