The departments of Labor, Health and Human Services, and the Treasury (the departments) issued a joint set of frequently asked questions addressing various provisions of the federal health care reform act.
The FAQ (Notice 2012-17) addresses questions relating to the following provisions of the health care reform act (Patient Protection and Affordable Care Act), including:
- Automatic enrollment of full-time employees in an employer’s health plan
- Shared responsibility of employers regarding health coverage
- 90-day waiting periods before an individual is eligible for health benefits
Many provisions of the health care reform act are slated to take effect in 2014 and are intended to expand access to health coverage. These three federal departments are working together to develop regulations and other administrative guidance to assist with implementation of the health care reform act.
One highlight from the FAQ is automatic enrollment: The automatic enrollment provision of the health care reform act requires certain large employers with more than 200 full-time employees to automatically enroll new full-time employees in one of the employer’s health benefit plans (subject to any legally authorized waiting period).
In what may be welcome news for large employers, the FAQ indicates that the regulations implementing this provision will not be ready by 2014: “In view of the need for coordinated guidance and a smooth implementation process, including an applicability date that gives employers sufficient time to comply, the Department of Labor has concluded that its automatic enrollment guidance will not be ready to take effect by 2014. It remains the Department of Labor’s view that, until final regulations under FLSA section 18A are issued and become applicable, employers are not required to comply with FLSA section 18A.”
The FAQ also outlines various approaches that the departments are considering proposing in future regulations and guidance materials. The departments said they welcome comments and input on all intended proposals.
Comments are requested by April 9, 2012. Follow the instructions listed on the notice and send the comments electronically to: e-ohpsca-er.ebsa@dol.gov.
Alternatively, comments may be sent via mail or hand delivery to: Office of Health Plan Standards and Compliance Assistance, Employee Benefits Security Administration, Room N-5653, U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, D.C., 20210.
Author: Gail Cecchettini Whaley
HR Watchdog, HRCalifornia’s Employment Law Blog, © California Chamber of Commerce