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State RegulationsTX specificDifficulty 2/5

Under the Affordable Care Act's employer notification provisions, a written notice to employees must inform them of which of the following?

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

Why C is correct

ACA Sections 1511-1515 add a notice requirement to the Fair Labor Standards Act, under which covered employers must give each employee a written notice describing the existence of the Marketplace, how to contact it, the services it provides, and the possibility that the employee may qualify for a premium tax credit and cost-sharing reduction if the employer's plan is unaffordable or does not provide minimum value. The notice is informational only; it does not select a plan for the employee and creates no reimbursement obligation for the employer.

Why the other options are wrong

  • A) An employer does not select a Marketplace plan for its employees through this notice. The notice points employees to the Marketplace to shop for themselves.
  • B) Nothing in the notification provisions requires an employer to reimburse an employee who buys Marketplace coverage instead of the employer's plan.
  • D) The notice is not a statement of employer liability. It tells employees about coverage options, not what the employer may owe.

Memory hook

The notice is informational: here is the Marketplace, and you may qualify for help.

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