Health Care Reform Model Employee Notice
– Required as of October 1, 2013
As part of health care reform, by October 1, 2013, all employers are required to provide a notice to employees regarding their health coverage. The new Notice is intended to inform employees of health insurance options and provide information on the existence of the new health insurance marketplaces, also called exchanges. The notice also ensures that employees who are offered coverage through their employers understand the trade-off when they give up employer-provided coverage and instead choose coverage through the marketplaces.
There are two notices, one for employers who offer health care coverage and one for employers who do not. The model notices are available by clicking on the links below:
- Model Notice for employers who offer a health plan
- Model Notice for employers who do not offer a health plan
The form for employers who offer coverage requires that the employer make a determination of whether or not the employer’s plan offers coverage that meets the Minimum Value criteria. Minimum value means that the coverage pays at least 60% of the total allowed costs. For fully-insured health plans, insurers should be able to inform employers whether the plan designs offered by the employer meet the minimum value standard. If your plan is self-funded, your actuary or TPA can assist you in making this determination. If you offer coverage through the AE Trust, we can advise you as to whether the plan(s) you offer meet minimum value.
The form also requires that the employer determine the affordability of the coverage they offer. This test applies to employee-only coverage and is based on the cheapest plan the employer offers, not necessarily the plan the employee has elected. A plan is deemed affordable if the employee does not have to contribute more than 9.5% of his/her income towards the employee-only coverage.
We have recorded a free informational Webinar on how to complete these Notices. To listen to the webinar and access a copy of the slides, click on the links below. If you have further questions after listening to the webinar, please call one of AE’s HR professionals at 406-248-6178.
Click HERE to Watch HCR Employer Notice Webinar