The ACA requires employers of all sizes to distribute a written notice to new employees that provides information about the state health insurance exchanges (also referred to as “marketplaces”) and how to request financial assistance for coverage on the exchange. The notice of exchange (or exchange notice) describes the availability of a premium tax credit and outlines the implications for employees if they choose to purchase a qualified health plan through an exchange in lieu of enrolling in the employer’s group health plan.
Employers must distribute the exchange notice to all new employees within 14 days of their date of hire, regardless of whether the employer offers a group health plan and regardless of whether the employees are eligible for employer-sponsored benefits. Although the exchange notice is not an annual requirement, many employers choose to include the notice with annual open enrollment materials. This practice is permissible, but it does not satisfy the initial hire distribution requirement, as explained in greater detail in the Methods of Distribution section below.
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