Provide updated health insurance marketplace notice to new employees

September 4, 2018|Thomas Schultz

The U.S. Department of Labor updated the health insurance marketplace notice, which employers need to provide to all new employees.

As required by the Affordable Care Act, employers must provide employees written notice with information regarding marketplace exchanges, the premium tax credit and the impact of choosing coverage through the marketplace exchange instead of through an employer.

The health insurance marketplace was designed to provide employees a way to buy health insurance and evaluate options that fit their needs and budget.

The U.S. Department of Labor (DOL) issued new versions of the notice, which expire May 31, 2020.

One model is written for employers who do not offer a health plan, while the other covers employers who do offer a health plan to some or all employees.

The model notices are also available in Spanish and Microsoft Word format at

Who must comply?

All employers that are subject to the Fair Labor Standards Act must provide employees notice of these coverage options, and you must distribute this notice to both part-time and full-time employees regardless of whether they’ve elected to enroll in your health plan.

When must the notice be provided to employees?

You must ensure employees are given a copy of the notice at the time of hire, and the DOL requires that you must provide it within 14 days of an employee’s start date.

Review the cost of your health care plans and premiums

As a reminder, large employers must also review their health care plans and premiums to ensure they meet the 2019 affordability test thresholds. The affordability test was designed to ensure full-time employees and their dependents are offered at least one health plan that provides minimum value at an affordable price. As an employer, you are responsible for ensuring the plan you offer meets the affordability threshold.

If you have any questions, please contact Thomas Schultz or another member of Schenck’s Health Care Reform team:

Thomas Schultz, PHR, SHRM-CP, is a manager – HR Consulting with Schenck. He has more than 20 years of human resources experience, including building human resource systems and structures that match the changing needs of businesses. He brings a broad blend of skills in areas such as leadership coaching, employee relations, benefits, training and development, change leadership and employment law.