Benefits

Automatic Enrollment in Larger Employer Health Plans Delayed to 2014

By Jerry Geisel

Feb. 15, 2012

A provision in the health care reform law that requires employers with more than 200 employees to automatically enroll new employees in one of their health care plans will not go into effect until 2014, federal regulators say.

In guidance released last week by the departments of Labor, Health and Human Services and the Internal Revenue Service, the agencies said the requirement will not go into effect until regulations are issued.

Separately, the Labor Department affirmed its earlier guidance that the automatic enrollment rules won’t be ready until 2014.

“In view of the need for coordinated guidance and a smooth implementation process, including an applicability date that gives employers sufficient time to comply, the Department of Labor has concluded that its automatic enrollment guidance will not be ready to take effect by 2014,” it said in a statement.

The statutory automatic enrollment provision, unlike many others in the Patient Protection and Affordable Care Act, itself does not stipulate an effective date.

Under the law, employers are required to notify employees about automatic enrollment and to give them an opportunity to opt out of a plan in which they were automatically enrolled.

Jerry Geisel writes for Business Insurance, a sister publication of Workforce Management. To comment, email editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Jerry Geisel writes for Business Insurance, a sister publication of Workforce Management.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness

workforce blog

Benefits

We are in the midst of a public mental health crisis; how employers can help

Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...

ADA, benefits, Coronavirus, FMLA, mental health, paid time off