Urgent Notice: The Affordable Care Act 10/1/13 Mandate

The federal health reform law called the Patient Protection and Affordable Care Act (ACA) provides for the creation of new state exchanges, also known as insurance marketplaces.  In CA, the state exchange is called Covered California. Most employers will be required to provide each current employee with a written notice of coverage options no later than October 1, 2013.

Any business with at least one employee and $500,000 in annual revenue are required to provide written notices to all employees – regardless of benefit enrollment status or full/part time status – about health coverage options.  Or face up to a $100/day fine.

Employers can send the notices by mail or electronically.  If you do not offer any health coverage you are still required to distribute the notice to all of your employees.  Effective January 1, 2014, employers will have 14 days from any new employees start date to provide a notice.

If you choose to create your own notice, you must include:

  • Explanation of the marketplaces
  • Reference to www.healthcare.gov
  • Information about premium subsidies that may be available if employees purchase a qualified health plan through the marketplace
  • Notification that employees may lose their employer contribution to the health plan if it is obtained through the marketplace
Download forms below: Offering Insurance Plans? YES or NO