Plan sponsors with 200 or more full-time employees must automatically enroll their newly eligible employees in employer-sponsored health coverage, subject to any permissible waiting period. In the event employees want different health coverage, they will be able to opt out of the employer’s plan. The employer is required to send certain notices to employees regarding the automatic enrollment process.
The effective date of this requirement is expected to be established by regulations, which the agencies have indicated will be some time after 2014.
Automatic Enrollment Hot Topics & FAQs
- If we need to automatically enroll one of our full-time employees in coverage, do we provide employee only coverage or family coverage? What if we offer multiple health coverage choices?
Answer: Those are good questions. The Health Care Reform law does not provide the answers, but hopefully federal agency guidance will. American Fidelity is committed to monitoring the rules and notifying customers as new guidance becomes available.
- Does an employer have to comply with these rules if a collectively-bargained agreement already includes automatic enrollment provisions?
Answer: Probably, but the Health Care Reform law does not directly address this question. Hopefully federal agency guidance will clarify how the new requirements coordinate with existing collective bargaining agreements.
American Fidelity Assurance Company does not provide tax or legal advice.