Since the Affordable Care Act’s enactment in March, 2010, employers with 200+ employees have been awaiting the implementation of regulations that would explain the automatic enrollment rule. Employers with 200+ employees would have had to enroll employees in the company health care plan automatically, while allowing them the option to decline coverage. Most employer plans work the opposite way – employees must affirmatively elect to participate. On November 2, 2015, President Obama signed into law a bill that eliminated this requirement for employers. Employers may, however, choose to automatically enroll employees (subject to state laws governing payroll deductions). The repeal of this provision of the Affordable Care Act simplifies the administrative process for employers and ensures that employees do not end up with unwanted and/or duplicative health benefits by virtue of their failure to opt out.
Our team of labor and employment attorneys can assist you in designing legally compliant employee benefit plans and other labor and employment law compliance issues