The DOL has issued temporary guidance and model notices regarding employer obligations to notify employees about health insurance exchanges. For current employees, employers must provide the exchange notice by October 1, 2013. Employers must also provide the notice to new hires within 14 days of their start date in 2014. The guidance provides a model exchange notice for employers that offer health coverage and a separate notice for those that do not offer coverage. It outlines requirements for delivery of the notice and implies employers can send the same notice to all employees. An updated COBRA election notice is also included that has extra exchange information.

1. News Flash: May 9, 2013 – DOL Issues Model Health Insurance Exchange Notice
Many employers have been eagerly awaiting the release of guidance explaining their obligations to
notify employees that health coverage and, possibly, premium assistance may be available through
a health insurance exchange. Late yesterday, the DOL issued temporary guidance regarding the
notice requirement and provided two separate model notices: one for employers that offer health
coverage to some or all of their employees and a second for employers who do not offer a health
plan.
Background
Under the health care reform law, employers that are subject to the FLSA must notify each
employee in writing about health insurance exchanges and how to request assistance. The notice
must also describe the possible availability of a premium tax credit and outline certain
consequences of purchasing coverage through an exchange. The notice requirement was originally
scheduled to take effect on March 1, 2013, but the requirement was delayed per an announcement
in late January.
Highlights of the Temporary Guidance
The National Legal & Research Group is studying the new guidance and model notices and will
provide detailed information in a future publication. On a quick reading of the materials, we noted
the following points:
• For then-current employees, the exchange notice must be provided not later than October 1,
2013.
• Employers must provide the exchange notice to each newly hired employee beginning
October 1, 2013.
• For 2014, the notice is timely if provided to a new hire within 14 days of the employee’s
start date.
• Employers must provide the notice to each employee, regardless of plan enrollment status
(if applicable) or of part-time or full-time status.
• Employers are not required to provide a separate notice to dependents or other individuals
who are or may become eligible for coverage under the plan but who are not employees.
• The notice may be provided by first-class mail or may be provided electronically, if the
electronic delivery satisfies the DOL’s safe harbor rules for electronic delivery of summary
plan descriptions.
• The temporary guidance notes that “an employer may send a copy of the same notice to
each affected employee,” implying that the employer need not provide a customized notice
to each employee.

2. Bonus COBRA Notice
The temporary guidance also provides an updated model COBRA election notice that includes
additional information regarding health coverage alternatives offered through the health insurance
exchanges.
The information in this publication is not intended as legal or tax advice and has been prepared
solely for informational purposes. You may wish to consult your attorney or tax adviser
regarding issues raised in this publication.