Notification for eligibility loss?

Question:

What notification do we have to give an employee who is losing their eligibility for coverage?

Answer:

ACA regulations do not provide any guidance on this.

If you are testing eligibility through the look-back measurement method, there is an administrative period associated with every measurement period where newly eligible employees are notified and given the ability to sign up for coverage.

This also the best time to alert currently eligible employees who will lose their eligibility that their coverage will stop on the last day of the stability period they are in and that, to continue with their coverage, they have the option of using COBRA benefits.

 

This Q&A was first published by ACA Insights' Helen Karakoudas on September 28, 2016 in a LinkedIn Pulse article titled "In the world of ACA compliance, every day should be Ask a Stupid Question Day."