Author: Alison D. Hurt, LeClairRyan
The Affordable Care Act (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 may contact the exchange to request assistance;
- Explains if the employer's plan pays less than 60 percent of the total allowed costs of benefits provided under the plan, that 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, that they may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for Federal income tax purposes.