Employer Checklist

Employers can review this at-a-glance checklist that provides some guidance on their responsibilities to their employees related to the health care reform law.

• 2011

  • Employers are required to report value of health coverage on employees’ 2011 W-2 forms  (optional until 2012)
  • Prohibit health account (FSA, HRA, HSA) reimbursement for over-the-counter drugs (except insulin) without a prescription
  • Inform employees about the higher penalties for withdrawal of HSA funds for non-medical expenses
  • Small employers (<100) should consider applying for wellness grants for establishment of wellness programs - As of Sept. 1, 2011, this grant program is pending further details from HHS.
  • Inform employees of the new voluntary federal long term care insurance program (CLASS Act); employers may elect to automatically enroll employees, and employees may opt out - As of Oct. 14, 2011, this program will not be implemented by HHS.

• 2012

  • No later than 9/23/12 (Updated March 2012)  Employees must receive a Uniform Summary of Coverage from the insurer; the format for the summary description has been determined by HHS.
  • Self insured plans are required to pay a Comparative Effectiveness fee: $1 per enrollee to fund comparative effectiveness research

• 2013

  • Employees will be limited to contributing $2,500 annually to flexible spending accounts (FSAs)
  • Self insured plans are required to pay a Comparative Effectiveness fee: $2 per enrollee to fund Comparative Effectiveness research
  • Inform high wage employees ($200,000 individual; $250,00 joint) of new Medicare payroll and investment income taxes
  • Provide employees with written notice regarding availability of Exchange plans and the potential eligibility for federal assistance to help pay for health coverage.
    • Kaiser Family Foundation created a flowchart – Employer Responsibility Under the Affordable Care Act - that illustrates how, starting in 2014, larger employers will face penalties if they don't make affordable health benefits coverage available.

• 2014

  • There are many major changes for 2014; plan to communicate the insurance reform changes to all employees, including individual coverage mandate, subsidies and tax penalties
  • Large employers are subject to a penalty if they do not offer coverage, offer affordable coverage or offer coverage meeting minimum value standards
  • Small employers (< 100) should determine whether to purchase coverage through an Exchange, if applicable
  • Prepare for additional reporting to the federal government on whether you offer health coverage, total number and names of those receiving coverage and any information about the cost of the plan