What information must be included in the health care exchange notice that an employer is required to provide to employees under the Affordable Care Act (ACA)?

Author: Alison D. Hurt, LeClairRyan

The ACA requires employers covered by the Fair Labor Standards Act to provide each employee with a written health care exchange notice that:

  • Notifies employees of the existence of the exchange, including a description of the services provided by the exchange and the manner in which the employee can contact the exchange to request assistance;
  • Explains that if the employer's plan pays less than 60 percent of the total allowed costs of benefits provided under the plan, then the employee may be eligible for a premium tax credit if the employee purchases a qualified health plan through an exchange; and
  • Informs employees that if they purchase a qualified health plan through the exchange, then they may lose the employer contribution (if any) to any health benefits plan offered by the employer and all or a portion of such contribution may be excludable from income for federal income tax purposes.