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State RegulationsTX specificDifficulty 2/5

An employer covered by the employer notification provisions of the federal health care reform law must give each employee which of the following?

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

Under ACA Sections 1511-1515, the employer notification duty is informational: the employer must tell employees about the marketplace, describe the coverage available through it, and advise them that they may be able to claim a premium tax credit if the employer's own plan is unaffordable or does not provide minimum value. The employer does not compute the employee's taxes, does not promise to pay marketplace premiums, and does not convert its plan into a marketplace plan at renewal.

Why the other options are wrong

  • A) The notice carries no promise by the employer to pay marketplace premiums for its employees.
  • C) The employer does not supply or reproduce the employee's tax return; the notice is about the marketplace, not tax preparation.
  • D) Nothing in the notification provisions converts an employer plan into a marketplace plan at renewal.

Memory hook

The employer notice informs employees about the marketplace; it does not pay for it.

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