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ARTICLE · 11 SEPTEMBER 2013

DOL Issues FAQs On Notice Oof Coverage Options, 90-Day Waiting Period

The Department of Labor’s Employee Benefits Security Administration has issued its 16th set of Frequently Asked Questions on the Affordable Care Act’s implementation.

United StatesEmployment and HR

The Department of Labor's Employee Benefits Security Administration (EBSA) has issued its 16th set of Frequently Asked Questions (FAQs) on the Affordable Care Act's (ACA) implementation. The latest guidance addresses questions on the notice of coverage options available through the future health exchanges, and the limits on waiting periods for coverage.

The ACA added a new section to the Fair Labor Standards Act (FLSA) that requires employers to notify employees of their health coverage options through the Exchanges. Earlier this year, the EBSA issued Technical Release 2013-02, which provided temporary guidance on this requirement as well as model notices.

According to the new FAQs, an employer will have fulfilled its notice obligation if another party – such as an issuer, multiemployer plan, or third-party administrator – provides "timely and complete notice." For an employer to be relieved of its notice obligation in this instance, the third party must provide

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