Tuesday, November 10, 2015

Affordable Care Act Auto Enrollment Mandate Repealed

Dave Kyllo

The budget deal (H.R. 1314, the “Bipartisan Budget Act of 2015”) signed into law by President Obama last week repeals Section 18A of the Fair Labor Standards Act (FLSA) which required employers with more than 200 full-time employees to automatically enroll new full-time employees in one of the employer’s health plans. The repealed FLSA provision was part of the Affordable Care Act. It had never been put into effect and critics considered the provision redundant with other ACA requirements.    

The law firm of Jackson Lewis wrote an advisory article about the repeal which further discusses employers that use “negative” or “default” elections for enrolling employees. The advisory notes that employers still need to notify employee about coverage and costs and give employees an opportunity to opt-out of benefits. 

AHCA/NCAL members are encouraged to look at AHCA/NCAL Insurance Solutions before deciding on their employee benefit plans. Members can contact AHCA/NCAL Insurance Solutions to see if that program can save them money on their health insurance programs or call Dave Kyllo at 202-898-6312 or Nick Cianci at 202-898-2841 for more information.

No comments:

Post a Comment