DOL Delays Exchange Notice & Promises HRA Guidance

On January 24, 2013, the DOL published Part XI of the FAQs about Affordable Care Act (ACA) Implementation. This delayed the March 1, 2013 deadline for employers to send an Exchange Notice.

The DOL provided two reasons for delaying the Exchange Notice.

(1) The notice will be coordinated with educational efforts by the IRS and HHS on the subject of minimum value

(2) A later deadline will ensure that individuals receive a notice with meaningful information

The new deadline will be in the late summary or early fall of 2013. Open enrollment for the Exchange- now known as the Health Insurance Marketplace- begins on October 1, 2013.

The DOL also addressed several pending issues for Health Reimbursement Arrangements (HRAs) related to when they are considered to be integrated with other coverage. Further guidance will be forthcoming.

The DOL had the following comments on HRAs:

• An HRA is not considered to be integrated unless the HRA is available only to employees who are covered by the employer’s primary group health plan coverage

• An HRA that reimburses individual insurance premiums is not integrated with that individual insurance coverage

• An HRA that is offered to employees who do not elect primary group health plan coverage is not integrated

Please feel free to contact our office with any questions.