With the Oct. 1 deadline for employers to notify employees about their health coverage options fast approaching, the Department of Labor issued clarification on the consequences if an employer fails to comply with that aspect of the law.
Though some health care advisers were expecting a fine for employers – $100 per employee per day was commonly referenced – the department unequivocally assures that employers will not be fined for failing to provide employees with notice about their coverage plans and the state health insurance marketplace, Covered California.
Although, employers won’t be penalized for failing to issue a notice by Oct. 1, they are still encouraged to deliver the written notice to employees as a safeguard from any issues that may arise.
According to the department, the notice should inform employees:
- about Covered California
- that, depending on their income and what coverage may be offered by the employer, they may be able to get lower cost private insurance within Covered California
- that, if they buy insurance through Covered California, they may lose the employer contribution (if any) to their health benefits.
To download model notices or learn more about the notification requirements, go online atwww.calrest.org/notify.