affordable care act

The ACA is a federal law enacted in 2010 to help provide affordable and adequate health coverage to consumers. It mandates all U.S. residents, subject to certain exceptions, to secure minimum essential health coverage for themselves and their families. Those who are unable to obtain coverage under an employer-sponsored plan may secure health insurance through a state or federal health insurance exchange.

The ACA requires employers to offer affordable and adequate health coverage or be subject to a penalty tax. Employers also are responsible for distributing certain required notices to their employees, such as a Summary of Benefits and Coverage.

The ACA requires employers to distribute a Notice of Health Exchange (NOE) informing employees they may be able to purchase lower-cost insurance through the federal health exchange. Employers must also report the cost of coverage on each employee’s Form W-2. However, this requirement is optional for employers that participate in multiemployer plans.

The ACA prohibits group health plans and group health insurance issuers from imposing eligibility waiting periods of more than 90 days after hire. However, a California law prohibits waiting periods of more than 60 days.

All group health insurance coverages administered by PacFed comply with the ACA. As your third-party benefits administrator, PacFed stays up-to-date with the latest regulatory requirements and distributes all required compliance notifications.