The U.S. Department of Health and Human Services (HHS) has issued final and interim final regulations on the establishment of the state health insurance exchanges that will begin operation in 2014. The final regulations will be effective May 26, 2012, with HHS accepting comments on the interim final rules through May 9, 2012, prior to finalizing those rules.
Employers may want to know how the exchanges operate so they are able to help employees when they move from employer-based coverage to an exchange, and vice versa. For instance, the regulations address the notice an exchange will issue to an employer if any of its employees qualify for premium subsidies through the exchange because the employer fails to offer the employee qualifying coverage at an affordable cost. The notice will announce the exchange’s intent to levy a penalty upon the employer, subject to the employer’s opportunity to appeal the assessment. The employer may avoid the penalty if it can show the employee is either not full-time or in fact received an offer of qualifying and affordable coverage.
Read more in this Health Reform Advisory Alert by Mark Holloway, J.D. at Lockton.com.